Canadian Forex Midday: C$ significantly weakens

By Commodity News Service Canada

Winnipeg, December 4 – The Canadian dollar was significantly
weaker against its US counterpart at midday Wednesday, undermined by
the Bank of Canada’s decision to leave their overnight rate at one per
cent, industry watchers said.
Better-than-expected US economic data was also weighing on the
loonie, investors said. According to the US Department of Commerce,
sales of new single family homes were up 25.4% in October to annual
rate of 444,000, which beat trade expectations of the annual rate only
moving up to 426,000 during the month.
However, gains seen in commodities, including gold, copper and
crude oil, limited any further losses.
Strong Canadian economic data was also supportive, brokers said.
Statistics Canada reported that Canada’s trade balance with the world
went from a C$303 million deficit in September to a C$75 million
surplus in October. The report said imports declined by 1.2% during the
month, while exports were down just 0.3%
At 11:31 CST Wednesday, the Canadian dollar was trading at
US$0.9347 or US$1.0698, which compares with Tuesday’s North American
close of US$0.9391, or US$=$1.0649.
At 11:31 CST Wednesday, the Toronto Stock Exchange was up 59.64
points to sit at 13,260.23.