By Commodity News Service Canada
Winnipeg, July 30 – The Canadian dollar was lower on Wednesday as data showed that the U.S. economy rebounded strongly in the second quarter, analysts say.
At 9:00 CDT Wednesday morning, the loonie was down 0.26 of a cent to US$0.9183 or US$1 = C$1.0851 as U.S. gross domestic product grew a better than expected four per cent after contracting in the January to 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 in advance of Statistics Canada reporting gross domestic products for May.
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Traders also saw some positive U.S. news two days prior to the release of the American government’s employment report for July. ADP, a payroll firm, reported that 218,000 jobs were created in the private sector during May. Analysts are expecting the U.S. government report to show that approximately 233,000 jobs were created during the month of July.
The U.S. Federal Reserve will be making its scheduled announcement on interest rates at around 1:00 CDT on Wednesday and traders will be looking for hints that the central bank could start to hike rates sooner than expected. Markets generally believe that interest rates will be hiked around mid-2015.
The TSX was up 64.05 points to sit at 15,510.60 at 9:00 CDT Wednesday morning.
