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The Canadian dollar CADUSD strengthened to its highest level in eight weeks against its U.S. counterpart on Tuesday, as the greenback broadly declined and domestic data showed a surprise increase for wholesale trade in September. The U.S. dollar fell against a basket of major currencies and U.S. stock index futures rallied as data showed that U.S. producer prices increased less than expected in October, providing further evidence that inflation was starting to subside. Canadian wholesale trade increased by 0.1 per cent in September from August, beating expectations for a 0.2 per cent decline, helped by higher sales of pharmaceutical products, data from Statistics Canada showed. Separate data showed that manufacturing sales were unchanged in September from August, an outcome that was also stronger than expected. Canada’s inflation data for October is awaited by investors on Wednesday for clues as to whether the Bank of Canada would raise interest rates by 25 or 50 basis points at its ...

The Canadian CADUSD dollar weakened to its lowest level in 11 days against its U.S. counterpart on Monday as rising COVID-19 cases in China weighed on investor sentiment and speculation that OPEC would increase output led to volatility in the price of oil. The loonie was trading 0.4% lower at 1.3440 to the greenback, or 74.40 U.S. cents, after touching its weakest intraday level since Nov. 10 at 1.3495. “It’s predominantly being driven by exogenous factors,” said Bipan Rai, North America head of FX strategy at CIBC Capital Markets. “We see the (U.S.) dollar up across the board; including against the Canadian dollar.” The safe-haven U.S. dollar advanced against a basket of major currencies, recouping some recent losses, as fresh COVID-19 curbs in China fuelled worries over the global economic outlook and made traders shun riskier currencies. The price of oil, one of Canada’s major exports, whipsawed as reports varied about whether Saudi Arabia and other OPEC oil producers are consider...

The Canadian dollar CADUSD rose against its U.S. counterpart on Tuesday as investor risk appetite picked up and preliminary domestic data showed retail sales climbing in October, while investors awaited comments by a senior Bank of Canada policy-maker. Canadian retail sales fell by 0.5 per cent in September from August, matching estimates, weighed by lower sales at gasoline stations, data from Statistics Canada showed. However, a flash estimate showed sales rebounding by 1.5 per cent in October. Other flash estimates were also upbeat, with manufacturing sales rising 2 per cent and wholesale trade up 1.3 per cent. Global shares recovered some of the previous day’s losses, drawing comfort from less-hawkish comments on interest-rate hikes by Federal Reserve policy-makers, although concern over more COVID infections in China kept gains in check. The safe-haven U.S. dollar fell against a basket of major currencies, while the price of oil, one of Canada’s major exports, rose after top expo...

The Canadian dollar CADUSD was little changed against its U.S. counterpart on Wednesday as investors kept their eye on developments overseas even as domestic data showed underlying inflation pressures picking up. The loonie was trading nearly unchanged at 1.3610 to the greenback, or 73.48 U.S. cents, after moving in a range of 1.3590 to 1.3637. “The focus here isn’t really on domestic factors for the CAD, it’s more on global forces,” said Mazen Issa, a senior FX strategist at TD Securities. Such forces include moves by China to reopen its economy as well as hawkish shifts by the European Central Bank and the Bank of Japan, Issa said. On Tuesday, the BOJ tweaked its policy of yield curve control in a surprise move that triggered a surge in the yen. Canada’s annual inflation rate eased to 6.8 per cent in November as gasoline price rose more slowly, but an uptick in prices after excluding food and energy left the door open for another interest rate increase by the Bank of Canada next mo...