The Canadian dollar weakened slightly against the greenback on Tuesday, extending its pullback from a near seven-week high the day before, as domestic data showed a surprise decline in manufacturing shipments.
According to Reuters, Canadian factory sales decreased by 0.7 per cent in October from September as the United Auto Workers strike in the United States weighed on transportation equipment sales, Statistics Canada said. Analysts had forecast no change.
Canada’s inflation report for November is due on Wednesday, which could help guide expectations for the Bank of Canada interest rate outlook.
Tuesday morning, the Canadian dollar was trading 0.1 per cent lower at 1.3173 to the greenback, or 75.91 U.S. cents. The currency traded in a range of 1.3155 to 1.3185.
On Monday, the loonie notched its strongest intraday level since Oct. 30 at 1.3115 after a trade deal between the United States and China.
Hopes that the U.S.-China trade deal will bolster oil demand in 2020 and the prospect of lower U.S. crude supplies supported the price of oil, one of Canada’s major exports. U.S. crude oil futures were up 0.5 per cent at $60.50 a barrel on Tuesday.
Canadian government bond prices were little changed across the yield maturity curve, with the 10-year rising three cents to yield 1.63 per cent. On Friday, the 10-year yield touched its highest intraday level in nearly seven months at 1.695 per cent.
(Reuters)
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