Canadian Dollar And Business Outlook

By Commodity News Service Canada

Winnipeg, April 29 – The Canadian dollar was higher against its American counterpart Wednesday morning, after discouraging US economic data pressured the US dollar.

At 8:53 CDT Wednesday morning, the loonie was up 0.0029 of a cent to US$0.8344 or US$1 = C$1.1985. The US Commerce Department said GDP expanded at a disappointing 0.2 percent annual rate in the first quarter of the year. The news pushed the American greenback to an eight-week low against a number of other world currencies. The Canadian dollar fell to its weakest level against the Euro in over a month.

Canadian producer prices rose for a second consecutive month, beating analysts’ estimates for a small decline. Canada’s industrial product price index rose 0.3% in March. The increase was credited to higher prices in energy and petroleum issues.

Cenovus Energy Inc. posted a $668 million loss during the first quarter. That compares to a $378 million profit last year.

On the commodity markets the May crude contract in New York fell US$0.16 to US$56.90 a barrel. The May gold contract sank $6.20 to US$1,207.70 an ounce.

At 8:53 CDT Wednesday morning, the TSX was down 85.88 points to 15,260.16,19.