By Commodity News Service Canada
Winnipeg, June 25 – The Canadian dollar weakened against its US counterpart at midday Tuesday, undermined by a slew of strong US economic data.
The positive data made it even more likely that the US Federal Reserve will go ahead with their plan to reduce stimulus programs in the country before the end of the year.
At 11:49 CDT Tuesday, the Canadian dollar was trading at US$0.9525, or US$1=C$1.0499, which compares with Monday’s North American close of US$0.9537, or US$=C$1.0486.
Disappointing economic news out of China and weakness in gold prices were also bearish for the value of the Canadian dollar.
However, spill over support from the gains seen in crude oil and North American equity markets helped to limit the loonie’s downside potential, analysts said.
The Toronto Stock Exchange was up 132.47 points, or 1.12%, at 11:49 CDT Tuesday, to sit at 11,969.33.
