By Commodity News Service Canada
Winnipeg, July 30 – The Canadian dollar was lower on Wednesday amid data that showed that the U.S. economy rebounded strongly in the second quarter, analysts say.
At 11:40 CDT Wednesday morning, the Canadian dollar was down 0.42 of a cent to sit at US$0.9167 or US$1 = C$1.0909.
U.S. gross domestic product grew four per cent after contracting in the January to March period because of severe winter weather. This GDP growth was much better than economists had expected. The contraction was revised lower to 2.1 per cent from 2.9 per cent.
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On Thursday, Statistics Canada will report Canadian gross domestic product data for the month of May.
Traders also saw positive news two days before the release of the U.S. government’s July employment report. ADP, a payroll firm, reported that 218,000 jobs were created in the U.S. private sector during July. Analysts are expecting the report to show approximately 233,000 jobs were created during the month.
Canadian July employment data will be released on August 8.
The U.S. Federal Reserve is scheduled to make its announcement on interest rates at 1:00 CST on Wednesday, which will have traders looking for clues that the central bank will hike interest sooner than anticipated. Markets have generally expected the Fed to start hiking rates in mid-2015.
The Toronto Stock Exchange was up 50.14 points at midday on Wednesday to sit at 15,496.69.
