By Commodity News Service Canada
Winnipeg, April 29 – The Canadian dollar was stronger against the US dollar at midday Wednesday, reacting to disappointing US economic data, analysts said.
The US Commerce Department said the country’s gross domestic product was up 0.2 per cent on a seasonally adjusted basis during the first quarter of 2015, while pre-report expectations called for a growth of 1.0 per cent.
At 11:55 CDT Wednesday, the Canadian dollar was trading at US$0.8356 or US$1=C$1.1967, which compares with Tuesday’s North American close of US$0.8313 or US$1=C$1.2030.
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Positioning ahead of the US Federal Reserve’s next policy announcement at 1:00 CT Wednesday was also providing some support for the Canadian dollar.
Though, the upside was limited by spillover pressure from the declines seen in commodities, including crude oil and gold.
In Canadian data, the Industrial Product Price Index jumped 0.3 per cent in March, largely due to higher prices for energy and petroleum products, Statistics Canada said.
Traders were waiting for Thursday’s February Canadian gross domestic product report, as it will help provide more direction for the loonie.
The Toronto Stock Exchange was down 47.57 points, or 0.31%, at 11:55 CDT Wednesday, to sit at 15,298.50.
