The Canadian Press - ONLINE EDITION

Canadian dollar little changed ahead of employment, merchandise trade data

  • Print

TORONTO - The Canadian dollar closed little changed Wednesday as traders looked ahead to key economic reports coming out over the next couple of days.

The loonie added 0.01 of a cent to 90.25 cents U.S. for a fifth day of gains.

On Thursday, traders will look to the release of the merchandise trade balance data for December. Economists expect the deficit to have narrowed to $650 million from $900 the previous month.

"Indications of a jump in U.S. customs receipts provide reason for optimism that some of the increase will be shared by Canadian firms, sending exports up $400 million in the month," said RBC assistant chief economist Paul Ferley.

"Some of the strength is also expected to reflect indications of oil prices rising in December, particularly the price of western Canadian oil, that will provide a boost to the nominal value of petroleum exports."

But the main focus is on the January jobs report, which comes out on Friday. Economists estimate the Canadian economy created about 20,000 jobs after the economy shed 44,000 in December.

Ahead of that data and the release at the end of the week of the U.S. government's jobs report, payroll firm ADP reported that the private sector created 175,000 jobs in the United States in January, about 15,000 short of what was forecast. Economists had been expecting that it would show that 190,000 jobs were added.

Also, the Institute for Supply Management said its non-manufacturing index showed rising expansion in January, coming in at 54, up a full point from December.

The loonie has now advance five consecutive sessions since hitting its worst levels in 4 1/2 years late last week.

Analysts point to data out at the end of last week showing the Canadian economy grew for a fifth straight month in November, up 0.2 per cent. Also, Scotiabank noted the markets are now pricing in a 16 per cent probability of an interest rate cut over the next 12 months, well off a 38 per cent probability on Jan. 10.

The loonie has also ridden a wave of optimism after a report from the U.S. State Department last week raised expectations that the Keystone XL pipeline, which would transport oilsands crude from Alberta to refineries along the Texas Gulf Coast, will be approved. Such a move could give a boost to the energy sector.

On top of that, the International Monetary Fund expects the Canadian economy will grow 2.2 per cent this year, up from an estimated 1.7 per cent in 2013 as the U.S. continues to import rising volumes of oil from Canada.

On the commodity markets, the March crude contract in New York gained 19 cents to US$97.38 a barrel.

The March copper contract was unchanged at US$3.19 a pound while April gold bullion futures gained $5.70 to US$1,256.90 an ounce.

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Weekend springtime weather with Doug Speirs - Apr 19

View more like this

Photo Store Gallery

  • Marc Gallant/Winnipeg Free Press. Local- Peregrine Falcon Recovery Project. Baby peregrine falcons. 21 days old. Three baby falcons. Born on ledge on roof of Radisson hotel on Portage Avenue. Project Coordinator Tracy Maconachie said that these are third generation falcons to call the hotel home. Maconachie banded the legs of the birds for future identification as seen on this adult bird swooping just metres above. June 16, 2004.
  • A gosling stares near water at Omands Creek Park-See Bryksa 30 day goose challenge- Day 25– June 21, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)

View More Gallery Photos

Poll

What are you most looking forward to this Easter weekend?

View Results

View Related Story

Ads by Google