The Canadian dollar was little changed against the greenback on Friday, posting a decline for the month as investors worried about U.S.-China tensions and data showed that Canada’s economic growth slowed as expected in the third quarter.
At 3:31 p.m. (2031 GMT), the Canadian dollar was trading nearly unchanged at 1.3279 to the greenback, or 75.31 U.S. cents. The currency traded in a range of 1.3272 to 1.3314.
For the month, the loonie was down 0.9% after it was pressured by a more dovish stance from the Bank of Canada.
Ahead of the central bank’s Dec. 4 interest rate decision, official data showed that the Canadian economy expanded at an annualized rate of 1.3% in the third quarter on higher business investment and increased household spending. That was slower than the 3.5% pace in the previous quarter but was close to analysts’ expectations.
“The headlines are bang on expectations but below the surface there is plenty to be optimistic about,” said Adam Button, chief currency analyst at ForexLive. “If anything, the GDP data makes it less likely that the Bank of Canada will cut rates or signal that it will cut rates in the coming months.”
Money markets see about a 40% chance that the central bank would cut by March.
Canadian Prime Minister Justin Trudeau said a little more work needed to be done on a new continental trade deal which has run into opposition from some U.S. Democrats over labor and environmental provisions.
Canada sends about 75% of its exports to the United States, including oil.
Oil slumped and Wall Street’s major indexes fell as U.S.-China discord over Hong Kong fueled investor anxiety about trade talks.
U.S. crude oil futures were down 4.6% at $55.42 a barrel.
Canadian government bond prices were higher across the yield curve, with the two-year up 2 Canadian cents to yield 1.58% and the 10-year rising 11 Canadian cents to yield 1.456%.
Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.