Loonie steadies, wholesale trade boosts economy
- November 26, 2019
After declining last week against the U.S. dollar, the Canadian dollar steadied this week as wholesale trade provided an added boost to the numbers.
September wholesale trade was up by 1.0 per cent over August, far exceeding the predicted 0.4 per cent gain, reports the Globe and Mail. Sales volume grew by 0.9 per cent.
The news may be even better than expected. The Globe and Mail report that the dollar had steadied came just before a tentative deal was reached between CN and its conductors and railyard workers. The strike had begun to have an economic impact and threatened to cloud economic prospects for the fourth quarter. A resolution to the strike would ease those concerns.
At the end of the day on Monday the Canadian dollar was trading at 75.17 cents U.S.
Hopes for a trade deal between the U.S. and China have also had a positive impact, after China said it would work to improve protections for intellectual property rights. As a major exporter of commodities, including oil, Canada’s economy would benefit from an easing of trade uncertainty.