C$ falls as greenback reasserts its broader dominance


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TORONTO — The Canadian dollar weakened

against its U.S. counterpart on Wednesday as the greenback

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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

stance.

Fed Chair Jerome Powell is due to speak at the Jackson Hole

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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)



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