AIRLINK 62.48 Increased By ▲ 2.05 (3.39%)
BOP 5.36 Increased By ▲ 0.01 (0.19%)
CNERGY 4.58 Decreased By ▼ -0.02 (-0.43%)
DFML 15.50 Increased By ▲ 0.66 (4.45%)
DGKC 66.40 Increased By ▲ 1.60 (2.47%)
FCCL 17.59 Increased By ▲ 0.73 (4.33%)
FFBL 27.70 Increased By ▲ 2.95 (11.92%)
FFL 9.27 Increased By ▲ 0.21 (2.32%)
GGL 10.06 Increased By ▲ 0.10 (1%)
HBL 105.70 Increased By ▲ 1.49 (1.43%)
HUBC 122.30 Increased By ▲ 4.78 (4.07%)
HUMNL 6.60 Increased By ▲ 0.06 (0.92%)
KEL 4.50 Decreased By ▼ -0.05 (-1.1%)
KOSM 4.48 Decreased By ▼ -0.09 (-1.97%)
MLCF 36.20 Increased By ▲ 0.79 (2.23%)
OGDC 122.92 Increased By ▲ 0.53 (0.43%)
PAEL 23.00 Increased By ▲ 1.09 (4.97%)
PIAA 29.34 Increased By ▲ 2.05 (7.51%)
PIBTL 5.80 Decreased By ▼ -0.14 (-2.36%)
PPL 107.50 Increased By ▲ 0.13 (0.12%)
PRL 27.25 Increased By ▲ 0.74 (2.79%)
PTC 18.07 Increased By ▲ 1.97 (12.24%)
SEARL 53.00 Decreased By ▼ -0.63 (-1.17%)
SNGP 63.21 Increased By ▲ 2.01 (3.28%)
SSGC 10.80 Increased By ▲ 0.05 (0.47%)
TELE 9.20 Increased By ▲ 0.71 (8.36%)
TPLP 11.44 Increased By ▲ 0.86 (8.13%)
TRG 70.86 Increased By ▲ 0.95 (1.36%)
UNITY 23.62 Increased By ▲ 0.11 (0.47%)
WTL 1.28 No Change ▼ 0.00 (0%)
BR100 6,944 Increased By 65.8 (0.96%)
BR30 22,827 Increased By 258.6 (1.15%)
KSE100 67,142 Increased By 594.3 (0.89%)
KSE30 22,090 Increased By 175.1 (0.8%)
Markets

Loonie recovers from 2-week low as Fed calms funding market

The data suggested that Canada's economy has not been able to escape headwinds to global trade. Still, the cen
Published September 17, 2019
  • The data suggested that Canada's economy has not been able to escape headwinds to global trade.
  • Still, the central bank expects economic growth to slow after a rapid pace of activity in the second quarter.

TORONTO: The Canadian dollar was little changed against its US counterpart on Tuesday, with the currency recovering from a near two-week low hit after weaker-than-expected domestic factory data as the greenback broadly declined.

Canadian factory sales slid by 1.3pc in July from June, far exceeding the 0.3 percent decrease expected by analysts, as plant maintenance shutdowns weighed on sales in the primary metal and motor vehicle industries, Statistics Canada said.

The data suggested that Canada's economy has not been able to escape headwinds to global trade, said Scott Lampard, head of global markets at HSBC Bank Canada.

"The Canadian economy is exhibiting a little bit of fatigue because it is swimming upstream," Lampard said.

The Bank of Canada has shown no appetite for cutting interest rates even as some of its global peers have eased.

Still, the central bank expects economic growth to slow after a rapid pace of activity in the second quarter.

"If you begin to see a bit of an accumulation of data points that confirm that the Canadian economy seems to be slowing... that's where you get the bank doing something that might be a little bit more aggressive than people had thought," Lampard said.

Canada's inflation report for August is due on Wednesday and could help guide expectations for the central bank's interest rate outlook.

At 4:50 p.m. (2050 GMT), the Canadian dollar was trading little changed at 1.3243 to the greenback, or 75.51 US cents.

The currency touched its weakest intraday level since Sept. 4 at 1.3300.

The US dollar fell against a basket of major currencies after the New York Federal Reserve said it would conduct a repurchase operation in a bid to lower funding costs, which had earlier climbed as much as 10pc.

The US central bank is expected to cut interest rates on Wednesday.

The price of oil, one of Canada's major exports, declined after Saudi Arabia's energy minister said the kingdom would fully restore by the end of the month its oil production, hit by an attack this weekend that shut 5pc of global oil output.

US crude oil futures settled 5.7pc lower at $59.34 a barrel.

Canadian government bond prices were higher across a flatter yield curve in sympathy with US Treasuries.

The 10-year rose 28 Canadian cents to yield 1.451pc.

Comments

Comments are closed.