TORONTO, July 31 (Reuters) – The Canadian dollar edged lower against its U.S. counterpart on Friday, but the currency was still on track for a monthly gain as domestic data showed stronger-than-expected economic growth.<\/p>\n
\n The loonie was trading 0.1% lower at 1.4025 per U.S. dollar, or 71.30 U.S. cents, after trading in a range of 1.4003 to 1.4057. For July, the currency was headed for a gain of 1.2% as the price of oil, one of Canada’s major exports, jumped.<\/p>\n
\n o Canada’s gross domestic product grew by 0.3% in May, eclipsing the 0.2% gain analysts had expected, while a preliminary estimate pointed to annualized second-quarter growth of 3.4%, which would be its best quarterly performance for more than three years.<\/p>\n
\n o “For the Bank of Canada, this will provide them with a bit more evidence that the economy is adapting to the trade uncertainty, and will trim their estimate of slack,” Douglas Porter, chief economist at BMO Capital Markets, said in a note. “But it likely won’t change the bigger picture concerns of fresh tariff threats and lofty energy prices.”<\/p>\n
\n o Investors expect the Bank of Canada to leave its benchmark interest rate on hold over the coming months, while chances of a hike by year-end edged only slightly higher to 68% from 60%, swap market data showed.<\/p>\n
\n o The U.S. dollar rose against a basket of major currencies, recovering some ground after Japanese authorities stepped in to prop up their currency a day earlier.<\/p>\n
\n o U.S. crude oil futures were trading 2.7% higher at $85.83 a barrel, adding to their monthly advance, as reports that some tankers were forced to turn around in the Strait of Hormuz prompted traders to reassess shipping flows through the key waterway.<\/p>\n
\n o Canadian bond yields rose across the curve. The 10-year was up 6 basis points at 3.650%, trading near the top of its range since May.<\/p>\n
\n o Canada’s bond market was set for an early close ahead of Monday’s civic holiday.<\/p>\n
(Reporting by Fergal Smith; Editing by Sharon Singleton)<\/p>\n
\n By Fergal Smith<\/p>\n","protected":false},"excerpt":{"rendered":"TORONTO, July 31 (Reuters) – The Canadian dollar edged lower against its U.S. counterpart on Friday, but the…\n","protected":false},"author":2,"featured_media":577801,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[72,113,61,60,123],"class_list":["post-577800","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-ie","tag-ireland","tag-markets"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/577800","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=577800"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/577800\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/577801"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=577800"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=577800"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=577800"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}