Skip to main content

The Globe and Mail

Loonie moves higher while traders digest economic data for direction

Canadian dollars.

JONATHAN HAYWARD/THE CANADIAN PRESS

The loonie moved higher against the U.S. dollar Wednesday as attention turned to the global economy.

The Canadian dollar remained above parity at $1.0054 (U.S.) as markets closed, ending up 0.29 of a cent.

A sense of caution is overshadowing the optimism that was prevalent in recent sessions. European stock indexes sank and the U.S. dollar rose against the euro, a sign that investors are becoming more fearful.

Story continues below advertisement

An inflation report from the Bank of England surprised economists with a markdown of long-term growth, though it kept its two- to three-year inflation forecast steady.

"The inflation report makes clear further weakness in output cannot automatically be seen as triggering a further policy response," Jens Larsen of RBC Europe said in a note.

"The weaker outlook for potential growth has implications for the fiscal framework: weaker growth means a weaker fiscal outlook, while lower potential output growth means a worse structural fiscal position."

China will release inflation, factory output and retail sales data on Thursday. Analysts expect inflation to fall further, which would give authorities in Beijing room to shore up slowing growth by easing credit without fear of igniting a spike in consumer prices.

In commodities, the September crude contract turned lower in the last minutes of trading on the New York Mercantile Exchange, falling 32 cents to $93.35 a barrel.

September copper moved down 1.9 cents to $3.42 a pound, while December gold rose $3.20 to end trading at $1,616 an ounce.

Report an error
Comments

The Globe invites you to share your views. Please stay on topic and be respectful to everyone. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

We’ve made some technical updates to our commenting software. If you are experiencing any issues posting comments, simply log out and log back in.

Discussion loading… ✨

Combined Shape Created with Sketch.

Combined Shape Created with Sketch.

Thank you!

You are now subscribed to the newsletter at

You can unsubscribe from this newsletter or Globe promotions at any time by clicking the link at the bottom of the newsletter, or by emailing us at privacy@globeandmail.com.