C$ falls as greenback reasserts its broader dominance
TORONTO — The Canadian dollar weakened
against its U.S. counterpart on Wednesday as the greenback
broadly rallied and preliminary domestic data showed wholesale
trade falling in July.
The U.S. dollar approached recent highs against a
basket of major currencies after it was pressured on Tuesday by
disappointing U.S. business activity data that could raise
prospects of the Federal Reserve dialing back its hawkish
Fed Chair Jerome Powell is due to speak at the Jackson Hole
economic symposium in Wyoming on Friday.
“The broader USD tone is really shaping CAD movement at the
moment,” strategists at Scotiabank, including Shaun Osborne,
said in a note.
The Canadian dollar was trading 0.4% lower at 1.30 to
the greenback, or 76.92 U.S. cents, after moving in a range of
1.2954 to 1.3015. On Tuesday, it touched its weakest intraday
level in nearly six weeks at 1.3063.
Canadian wholesale trade likely fell 0.6% in July from June,
dragged by lower sales of motor vehicles and motor vehicle
parts, Statistics Canada said.
The data adds to recent evidence showing a cooling of
economic growth in the third quarter.
The price of oil, one of Canada’s major exports, was up 0.6%
at $94.33 a barrel, supported by Saudi Arabia’s suggestion this
week that OPEC could consider cutting output to support prices.
Canadian government bond yields were higher across the
curve, tracking the move in U.S. Treasuries. The 10-year
rose 2.7 basis points to 3.068%, after touching its
highest in nearly five weeks at 3.086% during Tuesday’s session.
(Reporting by Fergal Smith
Editing by Bernadette Baum)