Friday, August 29th20.4°C
22817
21901

Canadian dollar rises after surprise improvement in domestic economy

TORONTO - An improvement in Canada's economy during the first month of the year left investors with a momentary sense of optimism, but the sheen quickly wore off the loonie.

The Canadian dollar ended at 90.46 cents US on Monday, ahead only 0.04 of a cent, after climbing nearly half a cent earlier in the day.

The short-lived jump followed a report from Statistics Canada that showed the economy grew by 0.5 per cent in January. The figure was above the 0.3 per cent prediction from economists, and marked an improvement from December when there was a 0.5 per cent decline.

Some economists pointed out that January's increase only recovered the GDP decline posted in December when bad weather slammed much of the country, and it wasn't reason to celebrate.

"Major swings in the last two months have overshadowed the disturbing fact that the Canadian economy’s average growth has been practically non-existent since November," said Desjardins senior economist Benoit Durocher in a note.

"Since January's increase only recovered the ground lost in December, the carryover for the first quarter of 2014 is nearly zero."

Subdued enthusiasm for the economy is reflected in the loonie, which has tumbled about four per cent since the start of the year.

"The Canadian economy had a bit more energy than expected at the start of the year, managing to rebound nicely from the December ice storm as well as braving the unusual cold in January," said Bank of Montreal chief economist Doug Porter in a note.

"While no one would mistake growth for being robust, it does look sturdy enough to top the economy's two per cent potential growth rate this year."

In commodities, the May crude oil contract fell nine cents to settle at $101.58, with the TSX energy sector 0.7 per cent higher.

Gold stocks were the biggest decliner as June bullion fell $10.50 to end the day at US$1,283.80 an ounce. May copper slipped 1.5 cents to US$3.03 a pound.

The Canadian Press


Read more Business News

22942


Recent Trending




Today's Market
S&P TSX15625.73+67.561
S&P CDNX1023.991.62
DJIA17098.4518.88
Nasdaq4580.271+22.577
S&P 5002003.37+6.63
CDN Dollar0.9191-0.0017
Gold1281.70-2.1001
Oil95.84+1.29
Lumber349.60+2.60
Natural Gas3.965+0.054

 
Okanagan Companies
Pacific Safety0.20+0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.190.00
Cantex0.08+0.01
Anavex Life Sciences0.25+0.01
Metalex Ventures0.0750.00
Russel Metals36.48+0.09
Copper Mountain Mining2.93+0.02
Colorado Resources0.180.00
ReliaBrand Inc0.10+0.001
Sunrise Resources Ltd0.0250.00
Mission Ready Services0.245-0.005

 



21623

FEATURED Property
17557811992 Green Mountain Road
5 bedrooms 3 baths
$1,350,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


At the Core: Lessons in pricing from Apple

Apple has taught many entrepreneurs the importance of design, how to create buzz when introducing new products to the marketplace, how to pioneer new technology and the importance of superior quality....


New Real Estate Brokerage in town

Move over “big guys” there’s a new brokerage in town featuring local expertise, long standing experience and a fresh boutique approach. Kelowna, August 31 2014 – You may have...


How much mortgage should you carry?

There are several things to consider when deciding how much home to buy. 1. Draw up a budget including the new mortgage payments. While the rules used by most lenders require that the mortgage paym...

_








Member of BC Press Council


22885