TORONTO - The Canadian dollar was higher Thursday, recovering some of Wednesday's declines as data showed that Canada's broadest measure of trade showed some improvement during the third quarter.
The loonie was up 0.07 of a cent to 94.45 cents US after dropping almost 0.6 of a cent Wednesday amid a sharp drop in oil prices.
Statistics Canada reported that the current account deficit decreased $500 million to $15.5 billion in the third quarter on a seasonally adjusted basis.
That was about $1 billion more than economists expected.
"However, most of that miss was due to a sharp downward revision to the prior quarter's tally, suggesting the current account actually improved marginally in Q3 relative to the prior quarter," said CIBC World Markets economist Emanuella Enenajor.
The agency said the change largely reflected reduced deficits on trade in goods and services as well as on investment income flows.
Other data out Thursday showed that the Industrial Product Price Index declined 0.3 per cent in October, mainly because of lower prices for petroleum and coal products. The Raw Materials Price Index fell 2.3 per cent, led by mineral fuels.
The major economic report of the week comes out Friday when Statistics Canada releases the latest economic growth figures for September and the third quarter.
The consensus calls for the economy to have grown at an annualized rate of 2.4 per cent during the quarter.
The trading session was relatively quiet with U.S. markets closed for the Thanksgiving holiday.
On the commodity markets, the January crude contract was off 14 cents to a six-month low of US$92.16 in electronic trading on the New York Mercantile Exchange. Oil racked up a steep loss of $1.38 on Wednesday as U.S. oil inventories unexpectedly rose last week instead of declining.
The Energy Department reported that the U.S. supply of crude oil is now 391.4 million barrels, which is 4.6 per cent above year-ago levels and “well above the upper limit of the average range for this time of year.”
December bullion rose $5.90 to US$1,243.80 an ounce while March copper was unchanged at US$3.19.
The major economic report of the week comes out Friday when Statistics Canada releases the latest economic growth figures for September and the third quarter.
The consensus calls for the economy to have grown at an annualized rate of 2.4 per cent during the quarter.