Canadian dollar lower, greenback strengthens on strong U.S. trade data - InfoNews

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Canadian dollar lower, greenback strengthens on strong U.S. trade data

Canadian loonies are pictured with U.S dollars in this April 6, 2010 photo. THE CANADIAN PRESS/Ryan Remiorz
January 07, 2014 - 6:00 AM

TORONTO - The Canadian dollar was lower Tuesday after data showed Canada's international trade deficit increased during November and the greenback improved on strong U.S. trade data.

The loonie fell 0.55 of a cent to 93.33 cents U.S. as Statistics Canada said the country's trade deficit went from $908 million in October to $940 million in November.

The agency said that Canada's merchandise imports edged up 0.1 per cent while exports were unchanged in November.

Meanwhile, the U.S. trade deficit fell in November to its lowest level in four years as gains in energy production and stronger sales of American-made airplanes, autos and machinery lifted exports to an all-time high.

The trade gap dropped 12.9 per cent to US$34.3 billion in November as exports rose 0.9 per cent, aided by a 5.6 per cent rise in petroleum exports. Imports dropped 1.4 per cent.

It is a heavy week for economic data with the most closely watched data of the week coming on Friday. Economists forecast that the U.S. non-farm payrolls report will show that about 195,000 jobs were created during December.

The reading will help the U.S. Federal Reserve determine how fast it will cut back on a key stimulus program, its US$85 billion of monthly bond purchases. The central bank said last month it would taper those purchases by $10 billion starting this month.

Traders also looked to the release of the minutes from the Fed meeting last month for clues on further tapering along with its latest reading on the economy.

Canadian jobs figures will also be released Friday and traders looked to the economy to have created about 13,000 jobs during the month.

On the commodity markets, the February crude oil contract on the New York Mercantile Exchange rose 47 cents to US$93.90 a barrel.

The March copper contract was unchanged at US$3.36 a pound while the February gold bullion contract was off $3.60 to US$1,234.40 an ounce.

News from © The Canadian Press, 2014
The Canadian Press

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