Canadian Dollar And Business Outlook

By Commodity News Service Canada

WINNIPEG, January 31 The Canadian dollar was trading at a slightly firmer level compared to its US counterpart at 8:58 CST Thursday, as strong Canadian gross domestic product data boosted its value, analysts said.

According to Statistics Canada, the country’s GDP increased by 0.3% in November, following a 0.1% rise in October.

At 8:58 CST Thursday, the Canadian dollar was at US$0.9992 or US$=C$1.0008, which compares with Wednesday’s North American close of US$0.9985 or US$=C$1.0015.

However, soft US employment data, as there were more jobless claims made during the week than anticipated, also helped to Canadian dollar move lower.

Weak commodity prices also undermined the value of the Canadian dollar on Thursday.

Canada’s Industrial Product Price Index (IPPI) was unchanged in December from November, while the Raw Materials Price Index (RMPI) fell 2.0% during the last month of 2012, StatCan said.

The TSX was down 41.87 points, or 0.33%, at 8:58 CST Thursday morning to sit at 12,752.57.