Canadian Forex Midday: C$ Lower

By Commodity News Service Canada

Winnipeg, Feb. 7 – The Canadian dollar was trading at a weaker level versus its US counterpart at midday Thursday, as concerns about the European economy weighed on its value, analysts said.

European Central Bank President Mario Draghi said at a press conference on Thursday that the weakening of the euro could have a negative impact on economic growth in the euro zone.

At 11:47 CST Thursday, the Canadian dollar was trading at US$1.0010, or US$1=C$0.9990, which compares with Wednesday’s North American close of US$1.0045, or US$=C$0.9955.

Weak Canadian building data was also an undermining influence for the Canadian unit. Statistics Canada reported that the total value of building permits issued in December fell 11.2% to C$5.7 billion, following a 14.5% decline in November.

Declining commodity prices, including crude oil, gold and copper, also pushed the Canadian dollar to lower ground.

The liquidation of positions ahead of Friday’s Statistics Canada employment data was also bearish for the loonie. Traders expect that 5,000 new jobs were created in January, which compares to 31,000 jobs in December.

The Toronto Stock Exchange was down 17.79 points, or 0.14%, at 11:47 CST Thursday, to sit at 12,743.80.