CAD Rises On Commodity Prices

The Canadian dollar was slightly higher Wednesday as commodity prices advanced.

The loonie rose 0.08 of a cent to 91.74 cents US amid general U.S. dollar weakness.

Analysts point to low expectations for first quarter U.S. gross domestic product growth, owing to the impact of severe winter weather and suggestions that the economy may actually have contracted during the January-March period.

“Accordingly the expectations for Fed interest rate hikes have been pared back slightly,” said Camilla Sutton , Chief FX Strategist, Managing Director Scotiabank Global Banking and Markets.

On the commodity markets, June crude in New York gained 33 cents to US$102.03 a barrel.

July copper gained four cents to US$3.17 a pound while June bullion rose $11.50 to US$1,306.30 an ounce.

It’s a light week for Canadian data. Statistics Canada releases the March report on manufacturing shipments on Thursday.

Traders will also look to the release of April existing home sales data Thursday morning.

via Kitco

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza