By Commodity News Service Canada
Winnipeg, June 25 The Canadian dollar was up on Wednesday due to weak U.S. economic data, analysts say.
At 9:09 CDT Wednesday morning, the Canadian dollar rose to US$0.9317 or US$ = C$1.0740, rising 0.09 cents US from Tuesday’s close of US$0.9308.
The increase in price came as the final revision to the American economic growth in the first quarter indicated that gross domestic product shrank more than expected at 2.9 per cent, traders say. This was two per cent more than economists had expected. The decline in economic performance can also be largely attributed to the severe winter weather.
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U.S. durable goods had fallen one per cent during May, against an expected one per cent gain. The drop was due to a sharp decrease in demand for military equipment.
The Canadian dollar had been up approximately a cent over the past week to a six month high. This was due to crude oil and gold prices increasing amid the increasing political unrest in Iraq and the tensions between Ukraine and Russia, analysts say.
On the commodity markets, August crude oil on the New York Mercantile Exchange rose 24 cents to US$106.27 a barrel, while August gold bullion dropped $1.60 to US$1,319.70. July copper was also lower, dropping one cent to US$3.14 a pound.
The TSX was up 34.15 points at 9:09 CDT Wednesday morning to sit at 14,996.52.
