Skip to main content

The Canadian dollar weakened against its U.S. counterpart on Wednesday as oil prices tumbled and stop-loss orders were triggered in the market between it and the Australian dollar, with the loonie pulling back from an earlier six-week high.

The Canadian dollar had rallied as much as 3.2 per cent against the Australian dollar since the beginning of the month

The move generated a lot of investor interest in selling the AUD-CAD currency pair, before a “wicked reversal” which caused some to abandon the trade, said Greg Anderson, global head of foreign exchange strategy at BMO Capital Markets in New York.

Story continues below advertisement

“I think that some of the stop-loss action in that cross may be part of the weakness in CAD relative to the U.S. dollar,” Anderson said.

Stop-loss orders are used by investors to limit their risk in a trade.

The Canadian dollar was trading 0.1 per cent lower at 1.3134 to the greenback, or 76.14 U.S. cents. It was the only G10 currency to lose ground against the greenback as hopes rose for a large U.S. coronavirus relief package and the price of oil, one of Canada’s major exports, fell.

U.S. crude oil futures settled 4 per cent lower at $40.03 a barrel after U.S. inventory figures showed demand weakening for refined products as global COVID-19 cases spiked.

Earlier in the session, the loonie touched its strongest level since Sept. 7 at 1.3081.

Canada’s annual inflation rate accelerated to 0.5 per cent in September but softer-than-expected retail sales growth of 0.4 per cent month-over-month for August and a sluggish estimate for September suggest a dampening heading into the holidays, Statistics Canada data showed.

Canadian government bond yields were higher across the curve in sympathy with U.S. Treasuries. The 10-year rose nearly 1 basis point to 0.614 per cent, having touched its highest since Sept. 1 at 0.653 per cent.

Story continues below advertisement

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.

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow topics related to this article:

View more suggestions in Following Read more about following topics and authors
Report an error
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies