By Commodity News Service Canada
WINNIPEG, August 10 (CNS Canada) The Canadian dollar strengthened against its US counterpart Wednesday morning, supported by weak US productivity data.
The US dollar fell against the euro and the yen after the declining productivity data slowed momentum gained from last week’s impressive jobs report, supporting the loonie.
The third consecutive decline in quarterly US productivity is pushing back market expectations that the US Federal Reserve will raise interest rates.
The US Federal Reserve has remained open to a possible increase in the coming months, and traders had estimated interest rates could be raised in September.
At 9:05 CDT Wednesday, the Canadian dollar was at US$0.7667 or US$=C$1.3043, which compares with Tuesday’s North American close of US$0.7620 or US$1=C$1.3123.
The TSX was up 9.55 points, or 0.06 per cent, at 9:05 CDT Wednesday morning to sit at 14,810.78.
