(The Canadian Press) TORONTO – The Canadian dollar was lower Thursday while traders took in data showing that Canada's trade deficit narrowed far more than expected during September.
The loonie was down 0.31 of a cent to 95.27 cents US as the greenback advanced against most other currencies.
Statistics Canada said the trade deficit with the world narrowed from a revised $1.1 billion in August to $435 million in September.
Economists had largely expected the deficit to come in at $1.1 billion.
The agency reported that merchandise exports grew 1.8% while imports edged up 0.2% in September.
The other major item on the economic calendar for the week is September manufacturing shipments, which will be released on Friday.
Traders are awaiting the start of confirmation hearings on Janet Yellen's nomination to lead the US Federal Reserve.
Yellin's prepared remarks were released Wednesday after the market close and they indicate she won't be straying from the low-interest rate policies of outgoing chairman Ben Bernanke.
She said the economy has regained ground lost to the recession. But she says unemployment remains too high.
Yellen reiterated the U.S. economy must show continued signs of improvement before the Fed starts tapering off its US$85 billion of monthly bond purchases.
Analysts say markets will be particularly interested in the Q-and-A session with Senators following her remarks, which are scheduled for 10 a.m. ET.
Meanwhile, official figures showed that the recovery from recession in the 17-country eurozone continued in the third-quarter of the year _ but only just. Eurostat, the EU's statistics agency, says Thursday that the region posted economic growth of 0.1% during the July to September period compared with the previous three-month period. That was in line with market expectations but below the previous quarter's 0.3% growth.
December crude on the New York Mercantile Exchange was down 75 cents to US$93.13 a barrel ahead of the latest U.S. inventory figures, which are being released later in the morning.