Canadian Financial Close: Loonie, TSX rise ahead of Labour Day

Glacier FarmMedia — The Canadian dollar ended the week with its highest close in a month.

The loonie closed at US$0.7277 or US$1=C$1.3742 on Friday, compared to US$0.7270 or US$1=C$1.3756 on Thursday. By comparison, last week’s close was US$0.7218 or US$1=C$1.3854.

Statistics Canada reported today that Canada’s economy shrank by 1.6 per cent in the second quarter, compared to two per cent growth in the first. United States tariffs were the main driver of the decline, but greater household and government spending cushioned the blow.

The U.S. Dollar Index was down 0.05 of a point at 97.76. The Commerce Department reported the annual inflation rate to be 2.6 per cent in July, the same as in June. Excluding food and energy, prices rose 2.9 per cent.

Crude oil prices were lower ahead of the OPEC+ meeting next week. The Energy Information Administration reported U.S. crude oil production reached a record high in the month of June, up 133,000 barrels per day from the month before at 13.58 million.

West Texas Intermediate lost US$0.58 per barrel at US$64.02. Brent crude oil dropped US$0.50/barrel at US$68.12.

The TSX/S&P Composite Index reached an all-time record of 28,607.30 points on Friday before closing at 28,564.45, up 129.65 points from Thursday.

Gold surged US$41.70 per ounce at $3,516.00.