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Canada’s dollar gained against its U.S. counterpart as traders squared positions before Greek elections in two days that may foreshadow the first exit from the 17-nation currency union.
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Statistics Canada sends at least 69 government workers and political aides economic reports a day before publication, a practice that investors say undermines market confidence.
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Canada’s dollar rallied and government bonds fell after Bank of Canada policy makers said higher borrowing costs “may become appropriate” because economic growth and inflation will be faster than it forecast.
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Canadian opposition parties are pushing for hearings into Statistics Canada’s practice of releasing economic reports a day before publication to at least 69 government workers and political aides.
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For the first time since the Bank of Canada raised interest rates on July 20, bond traders bet that Governor Mark Carney will leave borrowing costs unchanged when he and his fellow policy makers meet in two weeks.
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Canada’s dollar depreciated against its U.S. counterpart, matching the longest losing streak since December 2007, on speculation a slowing recovery for the nation’s biggest trade partner curtailed demand.
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Canada’s dollar dropped for the first time in four days after government reports showed inflation slowed more than economists forecast and retail sales unexpectedly stalled.
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Canada’s dollar rose from the lowest level in almost three months as a record increase in employment last month encouraged speculation that the central bank will raise borrowing costs as early as June.
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Canadian banks sold debt at a record annual pace through the end of April as lenders reduced their reliance on government-backed mortgage financing as the economy improves.
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Canada’s dollar weakened versus its U.S. counterpart in the longest losing streak since November as crude-oil prices stagnated amid mounting investor concern that global economic growth is faltering.