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The Canadian dollar edged lower against its U.S. counterpart on Wednesday, extending its pullback from a near two-week high the previous day, as the greenback broadly rose and investors worried about the global economic outlook.

The U.S. dollar rose against a basket of currencies as British Prime Minister Boris Johnson’s move to limit parliament’s opportunity to derail his Brexit plans weighed on sterling.

U.S. stocks declined after moves in the U.S. bond market brought back fears of a recession as the trade war between the United States and China drags on.

Canada exports many commodities, including oil, so its economy could be hurt by a slowdown in the global economy.

U.S. crude prices were up 2.6 per cent at $56.34 a barrel after industry data showing a fall in stockpiles of U.S. crude somewhat eased worries about subdued demand due to the U.S.-China trade war.

At 9:39 a.m., the Canadian dollar was trading 0.1 per cent lower at 1.3302 to the greenback, or 75.18 U.S. cents. The currency, which notched on Tuesday its strongest intraday level since Aug. 14 at 1.3225, traded in a range of 1.3282 to 1.3319.

The decline for the loonie came ahead of the release on Friday of Canada’s second-quarter gross domestic product data, which could help guide expectations for next week’s Bank of Canada interest rate decision.

Money markets expect the central bank to ease rates by the end of the year.

Canadian government bond prices were higher across the yield curve in sympathy with U.S. Treasuries. The two-year rose 3.5 cents to yield 1.32 per cent and the 10-year was up 11 cents to yield 1.113 per cent.

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Tickers mentioned in this story

Study and track financial data on any traded entity: click to open the full quote page. Data updated as of 28/03/24 6:16am EDT.

SymbolName% changeLast
CADUSD-FX
Canadian Dollar/U.S. Dollar
-0.28%0.73501

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