Canadian Dollar And Business Outlook

By Commodity News Service Canada

WINNIPEG, July 29 (CNS Canada) The Canadian dollar strengthened slightly against its US counterpart Friday morning, supported by favourable Canadian data.

Canada’s industrial product price index rose 0.6 per cent in June, according to Statistics Canada. Market expectations were for the index to rise by only 0.1 per cent.

However, the Canadian economy saw its deepest one-month decline in more than seven years, after wildfires halted some non-conventional oil extraction in Alberta, limiting gains.

Canada’s gross domestic product declined 0.6 per cent in May to C$1.65 trillion, Statistics Canada said on Friday, falling short of expectations.

At 8:40 CDT Friday, the Canadian dollar was at US$0.7626 or US$=C$1.3113, which compares with Thursday’s North American close of US$0.7598 or US$1=C$1.3161.

The TSX was down 14.43 points, or 0.10 per cent, at 8:40 CDT Friday morning to sit at 14,538.29.