Skip to main content

The Canadian dollar edged lower against its U.S. counterpart on Thursday, but held near a seven-week high as investors valued its potential to benefit from an improved outlook for the global economy.

Wall Street hit all-time highs again as U.S. Treasury Secretary Steven Mnuchin said an initial trade deal between the United States and China would be signed in early January, adding to optimism that was fueled by a breakthrough in trade talks last week.

Canada is a major exporter of commodities, including oil, so its economy could benefit from an improved outlook for global growth.

Story continues below advertisement

“In a world where global growth is improving Canada looks awfully attractive,” said Adam Button, chief currency analyst at ForexLive.

Stable government and relatively high interest rates add to the attractiveness of the Canadian dollar, Button said.

The Bank of Canada has left its benchmark interest rate on hold this year at 1.75 per cent despite easing by some global peers, such as the Federal Reserve and the European Central Bank.

At 2:29 p.m. EST, the Canadian dollar was trading 0.1 per cent lower at 1.3124 to the greenback, or 76.20 U.S. cents. The currency, which notched on Wednesday a seven-week high at 1.3103, traded in a range of 1.3108 to 1.3138.

U.S. crude oil futures settled 0.5 per cent higher at $61.22 a barrel, buoyed by falling U.S. crude inventories and thawing U.S.-China trade relations.

Canadian wholesale trade declined by 1.1 per cent in October from September on weaker sales in the machinery, equipment and supplies subsector, as well as agricultural supplies, Statistics Canada said. Analysts had forecast a 0.1 per cent decrease.

Separate data from payroll services provider ADP showed that Canada added 30,900 jobs in November, the fifth straight month of gains.

Story continues below advertisement

Canadian government bond prices were higher across the yield curve in sympathy with U.S. Treasuries. The two-year rose 5 cents to yield 1.700 per cent and the 10-year was up 31 cents to yield 1.657 per cent.

Earlier in the session, the 10-year yield touched its highest level since May 22 at 1.736 per cent.

Canada’s retail sales report for October is due on Friday.

Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.

Report an error
Tickers mentioned in this story
Unchecking box will stop auto data updates
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies