By Commodity News Service Canada
Winnipeg, August 21 – The Canadian dollar was slightly higher on Thursday as markets were focused on some disappointing purchasing managers data from China and the eurozone, analysts said. Traders were also looking ahead to a key speech from the head of the U.S. Federal Reserve scheduled for Friday.
At 9:05 CDT Thursday morning, the loonie rose 0.06 of a cent to US$0.9121 or US$1 = $C1.0944.
On Wednesday the Canadian dollar lost nearly a quarter of a cent as the minutes from the latest U.S. Federal Reserve meeting indicated that the central bank is in no rush to hike rates, traders say. However, the minutes also showed greater dissension among the Fed members on how quickly the labour market is improving. This is a key element in determining when the Fed will raise rates from near zero where they’ve been since the financial crisis.
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On Friday the Fed chairwoman, Janet Yellen, is scheduled to make her keynote speech to the central bank’s economic symposium in Jackson Hole, Wyoming. One topic she is expected to touch on is the slack in the U.S. labour market.
The preliminary version of HSBC’s manufacturing index for China fell to a three-month low in July, causing oil and metal prices to back off. This was also an indication that manufacturing businesses are barely growing.
The HSBC report adds to other recent indicators that the recovery is still shaky. Earlier this month, data showed that China’s exports accelerated but imports sagged, which may reflect weakening domestic demand.
The purchasing managers index for the eurozone also fell to 52.80 from 53.80 in July.
On the commodity markets, October crude oil declined 67 cents to US$92.78 a barrel. December gold bullion also declined to US$1,277 an ounce and September copper slipped two cents to US$3.16 a pound.
At 9:05 CDT Thursday morning, the TSX lowered 3.30 points to 15,558.65.
