Reduced generation in April at factories, mines and utilities in the U.S., with whom Canada shares strong commerce and trade relations, prompted the loonie to reverse losses from earlier during the Wednesday trade session. The early session losses were correlated with weak Canadian factory sales data in March, which marked the third time that metric has fallen during the past four months.
"To be honest, I'd characterize the move today more as dollar strength than CAD weakness," currency strategy global head Adam Cole with Royal Bank of Canada told Reuters on Wednesday. "It's a parallel move against most of the majors, rather than being anything specific to CAD. There isn't really much of an independent Canadian story … it's just caught in the wash of what the bigger dollar is doing."
The weaker-than-forecast economic data about manufacturing sales in March in Canada came as a surprise after the same metric had performed more strongly during the month prior, Reuters reports.
Canadian bond prices for two- and 10-year notes increased on Wednesday, according to Reuters.
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