USD/CAD touches 1.04 as U.S. Shutdown Persists

Canada’s dollar fell a third day as the government of its largest trading partner remained shut amid a political impasse about budgeting and lifting government borrowing authority.

The currency reached a four-week low as crude oil, the nation’s largest export, declined and gold dropped for a second day. A report yesterday showed Canada’s trade deficit widened in August even as exports to the U.S. that reached the highest since the end of 2011. Jobs growth slowed last month, according to a Bloomberg survey of economists before the government report on Oct. 11.

“We’ve seen some signals the U.S. slowdown may spill over to Canada, and we’ve had some weak trade numbers,” Shaun Osborne, chief currency strategist at Toronto-Dominion Bank’s TD Securities unit in Toronto, said by phone. “The Canadian dollar has really been sidelined and moving sideways for the past couple of weeks and I don’t think that’s going to change in the near term.”


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