Canadian dollar and business outlook

By Commodity News Service Canada

WINNIPEG, June 2 (CNS Canada) The Canadian dollar was weaker against its US counterpart Thursday morning, falling with favourable US data.

US jobless claims in the week ended May 28 fell by 1,000 to sit at a seasonally adjusted 267,000.

The good news suggests the economy is regaining momentum, which leads to speculation the Federal Reserve could raise interest rates later this month or in July.

In addition to less Americans filing for jobless benefits, U.S. private employers increased hiring throughout May and planned lay-offs by US-based employers fell 53 per cent.

Claims have remained below 300,000 for 65 straight weeks, the longest streak since 1973.

At 8:58 CDT Thursday, the Canadian dollar was at US$0.7630 or US$=C$1.3106, which compares with Wednesday’s North American close of US$0.7653 or US$1=C$1.3067.

The TSX was down 4.82 points, or 0.03 per cent, at 8:58 CDT Thursday morning to sit at 14,060.32.