Canadian Forex Midday: C$ Eases

By Commodity News Service Canada

Winnipeg, May 1 – The Canadian dollar was slightly weaker against its US counterpart at midday Wednesday, undermined by weak Chinese manufacturing data, analysts said.

The China Federation of Logistics and Purchasing reported their purchasing managers index decreased to 50.6 in April, from 50.9 in March.

At 12:01 CDT Wednesday, the Canadian dollar was trading at US$0.9916, or US$1=C$1.0085, which compares with Tuesday’s North American close of US$0.9926, or US$=C$1.0075.

Weak US manufacturing data also put downward pressure on the value of the Canadian dollar. The Institute for Supply Management reported their manufacturing purchasing managers index fell to 50.7 in April, from 51.3 in March. The trade estimated the index would fall to 51.0.

However, optimism that the US Central Bank will continue with its stimulus programs limited the loonie’s downside potential. Hopes that the European Central Bank will cut interest rates later this week were also supportive.

There was no significant Canadian economic data to report on Wednesday.

The Toronto Stock Exchange was down 137.99 points, or 1.11%, at 12:01 CDT Wednesday, to sit at 12,318.51.