- Canadian dollar at C$1.2869, or 77.71 U.S. cents
- Loonie touches its weakest since Nov. 1 at C$1.2903
- Bond prices mixed across the yield curve
- Canada-U.S. 10-year spread hits widest since July 6
The Canadian dollar clawed back losses against the greenback on Thursday, after hitting an earlier four-week low as data showed widening in the country’s current account deficit.
Canada’s current account deficit swelled in the third quarter to C$19.35 billion, the third largest in history, as the country’s international trade gap in goods continued to expand.
Separate data showed that Canadian average weekly earnings rose 1 percent in September from August. At 9:26 a.m. ET (1426 GMT), the Canadian dollar was little changed at C$1.2869 to the greenback, or 77.71 U.S. cents. The currency’s strongest level of the session was C$1.2857, while it touched its weakest since Nov. 1 at C$1.2903.
U.S. crude prices were up 0.75 percent as an OPEC-led meeting started in Vienna. Initial comments from the group’s members suggested an extension of crude output curbs until the end of 2018 would be the meeting’s most likely outcome. Oil is one of Canada’s major exports.
Data on Canada’s jobs for November and gross domestic product for the quarter will be released on Friday. That could help guide expectations for next week’s interest rate decision by the Bank of Canada. The central bank raised rates in July and September for the first time in seven years but has since turned more cautious on the outlook for the economy.
Canadian government bond prices were mixed across the yield curve, with the two-year up 0.5 Canadian cent to yield 1.434 percent and the 10-year flat to yield 1.880 percent. The gap between Canada’s 10-year yield and its U.S. equivalent widened by 1.8 basis points to a spread of -51.4 basis points, its widest since July 6.