Canadian Forex Midday: C$ Firmer

By Commodity News Service Canada

Winnipeg, Feb. 5 – The Canadian dollar was trading at a firmer level versus its US counterpart at midday Tuesday, as positive euro zone data lifted its value, analysts said.

Markit, a financial information group, reported its purchasing managers’ index for the euro zone increased to 48.6 in January from 47.2 in December.

At 11:48 CST Tuesday, the Canadian dollar was trading at US$1.0029, or US$1=C$0.9971, which compares with Monday’s North American close of US$1.0014, or US$=C$0.9986.

Strong economic data from China also underpinned the Canadian currency. HSBC’s purchasing managers index for China rose to 54 in January, from 51.7 in December. Anything above 50 indicates expansion.

However, concerns surrounding political problems in Spain that could impact the country’s economy in a negative way, limited the Canadian dollar’s upside potential.

The Toronto Stock Exchange was up 15.42 points, or 0.12%, at 11:48 CST Tuesday, to sit at 12,733.04.


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