Canadian Forex Midday: C$ Eases

By Commodity News Service Canada

Winnipeg, May 14 – The Canadian dollar eased against its US counterpart at midday Tuesday, undermined by ideas that a recent rally was overdone, analysts said.

At 11:51 CDT Tuesday, the Canadian dollar was trading at US$0.9860, or US$1=C$1.0142, which compares with Monday’s North American close of US$0.9891, or US$=C$1.0110.

Some of the weakness seen in crude oil and other commodities spilled over to further weigh on the value of the Canadian dollar.

Talk that economic growth in the US will outpace growth in Canada in 2013 also had some traders shying away from the loonie.

However, expectations that the euro zone’s recession is over, due to better than expected industrial production data in the region, limited the Canadian unit’s downside potential.

The Toronto Stock Exchange was up 47.02 points, or 0.38%, at 11:51 CDT Tuesday, to sit at 12,576.57.