The Canadian dollar was little changed against its US counterpart on Friday, with the currency recovering from an earlier six-week low which it hit as trade tensions escalated and after domestic data showed a drop in exports. Canada posted a narrower trade surplus in June as exports fell by 5.1%. It was the first drop for exports since February and reversed a big increase in May.
Speculators have cut their bullish bets on the Canadian dollar, data from the US Commodity Futures Trading Commission and Reuters calculations showed. As of July 30, net long positions had fallen to 21,722 contracts after they reached the highest in the prior week since February 2018 at 30,750.
At 3:54 pm (1954 GMT), the Canadian dollar was trading nearly unchanged at 1.3210 to the greenback, or 75.70 US cents. The currency, which fell by 0.3% this week, hit its lowest intraday level since June 20 at 1.3265. The loonie's recovery from Friday's low came as data showing a slower pace of US employment growth and the US-China trade tensions fuelled expectations that the Federal Reserve would cut interest rates again in September, pressuring the US dollar.
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