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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.