Canadian forex midday: C$ weakens

By Commodity News Service Canada

Winnipeg, April 30 – The Canadian dollar was weaker relative to the US dollar at midday Thursday, as positive US employment data was bearish, analysts said.

US jobless claims fell to a 15-year low during the week ended April 25. Initial unemployment benefit claims dropped 34,000 to a seasonally adjusted 262,000 during the week, the US Labor Department said.

At 11:49 CDT Thursday, the Canadian dollar was trading at US$0.8263 or US$1=C$1.2102, which compares with Wednesday’s North American close of US$0.8317 or US$1=C$1.2023.

The Canadian dollar was also reacting to Wednesday’s US Federal Reserve announcement, which said an interest rate increase is still possible this year in the US.

Though, strength in crude oil values, helped to limit the downside, as prices were moving above the $59 per barrel mark.

Better than expected Canadian gross domestic product (GDP) data for February was also supportive. Statistics Canada said GDP was unchanged during the month, while pre-report expectations called for a 0.1 per cent drop.

But, StatsCan also revised January’s GDP to a 0.2 per cent decline, from its initial 0.1 per cent drop estimate.

The Toronto Stock Exchange was down 59.25 points, or 0.39%, at 11:49 CDT Thursday, to sit at 15,288.09.