By Chris Fournier and Jamie McGee Dec. 11 (Bloomberg) -- Canada’s currency rose to a two-week high as its U.S. counterpart fell and the domestic trade surplus narrowed in October less than analysts forecast. “The U.S. dollar is getting sold off across the board,” said Steven Butler, director of foreign-exchange trading at Scotia Capital Inc. in Toronto. “The data in Canada was better than expected, and the U.S. data, once again, was much worse than expected.” Canada’s dollar gained 2 percent to C$1.2320 per U.S. dollar at 9:27 a.m. in Toronto, from C$1.2569 yesterday. It touched C$1.2298, the strongest level since Nov. 27. One Canadian dollar buys 81.17 U.S. cents. The U.S. greenback weakened against all of the 16 most actively traded currencies tracked by Bloomberg including the Canadian dollar. The domestic trade surplus narrowed for a second month in October to C$3.78 billion ($3.03 billion), Ottawa-based Statistics Canada said. The surplus was more than the C$3.3 billion forecast by 22 economists in a Bloomberg News survey. The U.S. trade deficit grew 1.1 percent to $57.2 billion in October, the Commerce Department reported in Washington. The median forecast of economists in a separate Bloomberg survey was for a deficit of $53.5 billion. “A better-than-expected trade report generally supports the currency, especially when it contrasts with a pretty dismal U.S. trade report out at the same time,” said Sal Guatieri, an economist at BMO Capital Markets in Toronto. To contact the reporters on this story: Chris Fournier in Montreal at cfournier3@bloomberg.net; Jamie McGee in New York at jmcgee8@bloomberg.net

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