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TechnologyCanadian dollar falls as Bank of Canada's Poloz says economy weaker than expected

16:55  06 december  2018
16:55  06 december  2018 Source:   reuters.com

Canadian dollar dips after weaker-than-expected inflation, retail sales

Canadian dollar dips after weaker-than-expected inflation, retail sales Canadian dollar dips after weaker-than-expected inflation, retail sales

(Reuters) - The Canadian dollar fell against its U. S . counterpart on Thursday to a nearly 18-month low, as Bank of Canada Governor Stephen Poloz said The currency hit its weakest level since June 12, 2017 at 1.3445 earlier in the session. Poloz , speaking a day after the central bank kept interest rates

(Reuters) - The Canadian dollar fell against its U. S . counterpart on Thursday to a nearly 18-month low, as Bank of Canada Governor Stephen Poloz said the economy was weaker than forecast and predicted low oil prices would cut growth. Poloz ' s comments were likely to reinforce market

Canadian dollar falls as Bank of Canada's Poloz says economy weaker than expected© Reuters/Mark Blinch A Canadian dollar coin, commonly known as the "Loonie", is pictured in this illustration picture taken in Toronto

(Reuters) - The Canadian dollar fell against its U.S. counterpart on Thursday to a nearly 18-month low, as Bank of Canada Governor Stephen Poloz said the economy was weaker than forecast and predicted low oil prices would cut growth.

Poloz's comments were likely to reinforce market expectations that the pace of future rate hikes will ease off.

At 9:17 a.m. (14:17 GMT), the Canadian dollar was trading down 0.4 percent against the greenback, at 1.3415 or 74.54 U.S. cents. The currency hit its weakest level since June 12, 2017 at 1.3445 earlier in the session.

Poloz, speaking a day after the central bank kept interest rates on hold, repeated that more tightening would be needed to keep inflation on track but added the pace would be decidedly data-dependent.

Poloz says markets showing ‘welcome symptoms’ of normalization

Poloz says markets showing ‘welcome symptoms’ of normalization Recent developments in global financial markets -- particularly rising long-term bond yields and volatile stock markets -- are a reflection of strong global economic fundamentals, not weak ones, according to Bank of Canada Governor Stephen Poloz. In a speech on how to read recent signals from financial markets, Poloz played down recent movements -- such as a flattening yield curve -- as evidence of deterioration. Instead, the focus should be on a recent increase in yields signaling the market expects monetary policy normalization to continue in response to a world economy running close to capacity.

The Canadian dollar fell against its U. S . counterpart on Thursday to a nearly 18-month low, as Bank of Canada Governor Stephen Poloz said the economy was weaker than forecast and Poloz ' s comments were likely to reinforce market expectations that the pace of future rate hikes will ease off.

Expected @. * Oil loses 3 percent in volatile trade as OPEC meets. * Bank of Canada frets low oil prices. Dec 6 (Reuters) - The Canadian dollar fell against its U. S . counterpart on Thursday to a nearly 18-month low

Much of the bank's discussion ahead of the interest rate announcement on Wednesday had been focused on oil, he said. Prices for crude, one of Canada's main exports, are sinking amid a supply glut and this is hurting Alberta, the western province which is home to the domestic industry.

Oil prices tumbled about 3 percent in a volatile session on Thursday after OPEC signaled it may agree to a smaller output cut than expected and as concern over the economic impact of trade tensions hit global stock markets.

Canada's trade deficit widened in October to C$1.17 billion ($0.87 billion), as both imports and exports dipped, Statistics Canada said on Thursday.

"The unexpectedly large widening of the trade deficit in October is a sign of things to come, with continued falls in energy prices in November set to cause export values to decline further," Stephen Brown, senior Canada economist at Capital Economics, said in a note.

Four charts for Poloz to ponder in weighing Canadian rate hikes

Four charts for Poloz to ponder in weighing Canadian rate hikes Investors are hunting for clues Wednesday on whether Bank of Canada Governor Stephen Poloz is swayed by recent signs of economic weakness or sticks with his desire to boost interest rates back to neutral. While his one-page decision is expected to keep borrowing costs unchanged, here is a sampling of data that highlight some of the headwinds facing Canada’s economy: © Bloomberg Canadian economic indicators have been surprising to the downside Citi’s Economic Surprise Index, which tracks the difference between market expectations for data and their actual values, has been trending at the lowest level since last summer and has b

TORONTO (Reuters) - Bank of Canada Governor Stephen Poloz on Thursday said the economy was weaker than forecast and predicted low oil prices would cut growth, comments likely to reinforce market expectations that the pace of future rate hikes will ease off. Poloz , speaking a day after the central

The economy of Canada is a highly developed mixed economy with 10th largest GDP by nominal and 16th largest GDP by PPP in the world.

The Canadian dollar will rally over the coming year if oil prices recover and the Bank of Canada continues lifting interest rates, according to a poll of currency strategists who have become less bullish on prospects for the currency.

On Thursday, broader risk sentiment was weak and global stock markets slumped for a third day running as the arrest of a top executive of Chinese tech giant Huawei in Canada for extradition to the United States fed fears of fresh tensions between the two economic superpowers.

Canadian government bond yields were lower on the day, with the yield on the 10-year at 2.078 percent, down from 2.135 percent at the close of the previous session.

(Reporting by Saqib Iqbal Ahmed; Editing by Bernadette Baum)

Follow @MSNMoneyCanada on Twitter.

Bank of Canada holds rates, cuts growth forecasts on low oil.
Bank of Canada holds rates, cuts growth forecasts on low oil

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