By Commodity News Service Canada
Winnipeg, May 29 – The Canadian dollar firmed against its US counterpart at midday Wednesday, recovering from Tuesday’s sharp decline, analysts said.
At 11:50 CDT Wednesday, the Canadian dollar was trading at US$0.9654, or US$1=C$1.0332, which compares with Tuesday’s North American close of US$0.9620, or US$=C$1.0395.
Some of the strength in the Canadian dollar was linked to ideas that recent economic indicators show that first quarter growth was better than the Bank of Canada expected.
Expectations that Friday’s Canadian gross domestic product (GDP) data will show GDP grew 2.3 per cent in the first quarter of 2013, compared to a 0.6 per cent rise during the last quarter of 2012, provided further support.
However, weakness seen in commodity prices, including crude oil and copper, helped to limit the Canadian dollar’s upside potential.
The Bank of Canada left its key interest rate unchanged once again, which was expected and therefore had little impact on the Canadian unit.
The Toronto Stock Exchange was down 79.32 points, or 0.62%, at 11:50 CDT Wednesday, to sit at 12,671.20.
