Friday, November 28th-2.5°C
23286
24225

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




Recent Trending




Today's Market
S&P TSX14744.70-177.74
S&P CDNX741.87-13.53
DJIA17828.240.49
Nasdaq4791.63+4.312
S&P 5002067.56-5.27
CDN Dollar0.8751-0.0067
Gold1175.20-21.40
Oil66.15-7.54
Lumber329.40+1.40
Natural Gas4.295+0.144

 
Okanagan Companies
Pacific Safety0.145-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.27-0.07
Cantex0.04-0.005
Anavex Life Sciences0.1998+0.0288
Metalex Ventures0.06+0.02
Russel Metals29.91-0.79
Copper Mountain Mining1.94-0.18
Colorado Resources0.125-0.005
ReliaBrand Inc0.0134-0.0001
Sunrise Resources Ltd0.05+0.005
Mission Ready Services0.325+0.005

 
23744


23872

FEATURED Property
2128222Holiday Park Camping Membership
$25
more details
Click here to feature your property
Please wait... loading


Don't stop dreaming!

On Wednesday evening I drove through the Bow Valley in Alberta. It is my old home town... the first place Jackie and I moved to in 1988 when we emigrated. We ended up setting up home there and living...


Second marriage issues

It is not unusual that one or both of the parties planning to marry are approaching marriage for the second time. There are pluses and minuses to this new situation. On the plus side, individuals ente...


The last great Canadian tax shelter

A guide to how flow-through fund limited partnerships can mightily aid your tax planning!The end of the year will raise concerns among many professionals, self-employed persons, business owners and ev...

_



24231

24207


Member of BC Press Council


24003