Monday, March 2nd0.6°C
25405
25147

Loonie declines amid rebound in U.S. GDP; traders look to Canadian growth data

TORONTO - The Canadian dollar closed lower Wednesday as the American greenback gained strength against major currencies after data showed that the U.S. economy rebounded strongly in the second quarter.

The loonie was down 0.36 of a cent to 91.73 cents US as gross domestic product in the U.S. grew a much better than expected four per cent after contracting in the January-March period because of severe winter weather. That contraction was revised lower to 2.1 per cent from 2.9 per cent.

The data was released a day before Statistics Canada reports gross domestic product data for May. Economists looked for a 0.3 per cent advance in the month but some say that Canadian GDP could come in higher.

Traders also took in some positive employment news two days before the release of the American government's employment report for July. Payroll firm ADP reported that 218,000 jobs were created in the private sector during the month. Analysts looked for the U.S. government report to show that about 230,000 jobs were created during July.

Canadian jobs data for July comes out on August 8.

Meanwhile, the U.S. Federal Reserve ended its two-day policy meeting with word that it is continuing to pare its monthly bond purchases. They have been intended to keep long-term borrowing rates low and are set to end in October.

The Fed reiterated that it will keep short-term rates low "for a considerable time" after those bond purchases end. Most economists think a rate increase is about a year away.

On the commodity markets, oil prices lost early momentum from the economic growth data and September crude slipped 70 cents to US$100.27.

September copper was two cents higher at US$3.24 a pound while December bullion was off $3.60 to US$1,296.90 an ounce.

The Canadian Press


Read more Business News

25320


Recent Trending




Today's Market
S&P TSX15250.74+16.40
S&P CDNX703.93-2.80
DJIA18248.45+115.75
Nasdaq4999.063+35.535
S&P 5002112.85+8.35
CDN Dollar0.7972-0.0024
Gold1203.00+6.10
Oil52.37+0.23
Lumber296.40-0.80
Natural Gas2.895-0.007

 
Okanagan Companies
Pacific Safety0.12+0.005
Knighthawk0.010.00
QHR Technologies Inc1.550.00
Cantex0.035-0.005
Anavex Life Sciences0.1876-0.0024
Metalex Ventures0.035-0.005
Russel Metals25.47+0.09
Copper Mountain Mining1.33+0.03
Colorado Resources0.135-0.015
ReliaBrand Inc0.008-0.0007
Sunrise Resources Ltd0.035-0.015
Mission Ready Services0.225-0.01

 



24353

FEATURED Property
2217075103-2205 Louie Drive
$429,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Refinance your mortgage?

Canadian Mortgage rates are low and could be dropping down in time for the spring market following a drop in the Bank of Canada Rate on January 21 by 1/4% which will save new buyers and those with mo...


Creating your retirement vision

A vision means different things to different people. To the head of a large corporation, it’s the ability to chart a course that will deliver success (think Steve Jobs and Apple), to a shaman, i...


Are you asking the right questions?

Have you ever had this happen to you? You are in the middle of your second or third good discussion with a prospect and everything seems to be going great. The prospect seems engaged and happy to work...

_








Member of BC Press Council


24681