Canadian Forex Midday: C$ Stronger, Approaching Parity

By Commodity News Service Canada

Winnipeg, May 8 – The Canadian dollar was stronger at midday Wednesday, slowly approaching parity with its US counterpart.

At 11:58 CDT Wednesday, the Canadian dollar was trading at US$0.9974, or US$1=C$1.0026, which compares with Tuesday’s North American close of US$0.9956, or US$=C$1.0044.

Much of the strength in the value of the Canadian dollar was linked to spill over support from the advances seen in commodities and outside markets.

Analysts noted that some of the upward price movement was also linked to confidence in the Bank of Canada’s new governor, Stephen Poloz, who will take over for Mark Carney at the end of May.

However, weak Canadian housing starts data helped to limit the loonie’s upside potential. According to Canada Mortgage & Housing Corp., Canadian housing starts were 174,900 in April, slightly below expectations of 175,000.

The Toronto Stock Exchange was up 93.76 points, or 0.75%, at 11:58 CDT Wednesday, to sit at 12,557.87.