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CANADA FX DEBT-C$ gives back some recent gains after weak domestic data
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CANADA FX DEBT-C$ gives back some recent gains after weak domestic data
Aug 15, 2024 12:45 PM

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Canadian dollar falls 0.1% against the greenback

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Wholesale trade decreases 0.6% in June

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Price of U.S. oil settles 1.5% higher

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Bond yields rise across the curve

By Fergal Smith

TORONTO, Aug 15 (Reuters) - The Canadian dollar edged

lower against its U.S. counterpart on Thursday as the greenback

notched broad-based gains and domestic data showed a decline in

wholesale trade, with the currency retreating from a near

four-week high it notched the day before.

The loonie was trading 0.1% lower at 1.3725 to the

U.S. dollar, or 72.86 U.S. cents, after touching on Wednesday

its strongest intraday level since July 18 at 1.3686.

"A weak two-month performance from Canadian wholesale sales

might be taking some strength from the loonie," said Michael

Goshko, senior market analyst at Convera Canada ULC.

Canadian wholesale trade fell by 0.6% month-over-month in

June, after declining by 1.2% in May, on lower sales in the

motor vehicle and motor vehicle parts and accessories subsector.

Separate data showed Canadian home sales falling 0.7% in

July from June.

The Bank of Canada has said that too much slack in the

economy could slow inflation more than it would like.

The U.S. dollar rose against a basket of major currencies

after U.S. economic data eased fears of a recession and dampened

expectations for aggressive interest rate cuts from the Federal

Reserve.

The prospect of a U.S. soft landing could also help Canada's

economy, Goshko said.

Canada sends about 75% of its exports to the United States,

including oil. U.S. crude oil futures settled 1.5% higher

at $78.16 a barrel.

Canadian government bond yields moved higher across the

curve, tracking moves in U.S. Treasuries. The 10-year

was up 5 basis points at 3.073%, after four straight

days of declines.

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