C$ edges higher as oil price steadies, China-US trade hopes grow

TORONTO: The Canadian dollar firmed against its broadly stronger US counterpart on Thursday as oil prices stabilized and signs emerged that the United States and China were working to resolve a trade war.

China has delivered a written response to US demands for wide-ranging trade reforms, three US government sources said, a move that could trigger more formal negotiations to resolve a trade war between the world's top economies.

Canada is a major exporter of commodities, including oil, and runs a current account deficit, so its economy could benefit if prospects improve for the flow of trade or capital.

The price of oil stabilized after losing nearly 7 percent over the previous three days, though concern over the prospect of an oversupplied market next year continued to weigh on prices despite OPEC's message that it may cut crude output.