Canadian Forex Midday: C$ Softer

By Commodity News Service Canada

Winnipeg, December 14 – The Canadian dollar was trading at a softer level compared to its US counterpart at midday Friday, as disappointing domestic manufacturing data weighed on its value, analysts said.

Statistics Canada reported Canadian manufacturing sales were down 1.4% in October, to C$48.8 billion, falling below pre-report expectations of a 0.2% decline.

At 11:46 CST Friday, the Canadian dollar was trading at US$1.0145 US$1=C$0.9857, which compares with Thursday’s North American close of US$1.0154, or US$=C$0.9848.

Concerns about the impending US ‘fiscal cliff’ had traders shying away from riskier assets, including the Canadian dollar, which was also responsible for the unit’s weakness.

However, strong Chinese manufacturing data helped to limit the Canadian currency’s downside potential. China’s HSBC Corp. announced its preliminary December Purchasing Managers’ Index rose to 50.9, from 50.5 in November.

Strong commodity prices also helped to underpin the value of the Canadian dollar at midday Friday, industry watchers noted. The Toronto Stock Exchange was up 1.58 points, or 0.01%, at 11:46 CST Friday, to sit at 12,290.75.