By Commodity News Service Canada
Winnipeg, Oct 28 – The Canadian dollar strengthened relative to the US dollar at midday Tuesday, reacting to disappointing economic data out of the US, analysts said.
The US government reported durable goods orders dropped 1.3 per cent in September, while pre-report expectations called for a decline of just 0.7 per cent.
At 11:43 CDT Tuesday, the Canadian dollar was trading at US$0.8939, or US$1=C$1.1187, which compares with Monday’s North American close of US$0.8898 or US$1=C$1.1238.
A rebound in crude oil futures Tuesday morning was also helping to underpin the Canadian currency.
There was no significant Canadian economic data released on Tuesday. Traders were looking ahead to gross domestic product data that will be released by Statistics Canada on Friday.
The market was also evening positions ahead of Wednesday’s US Federal Reserve interest rate announcement, participants said.
The Toronto Stock Exchange was up 75.10 points, or 0.52%, at 11:43 CDT Tuesday, to sit at 14,544.10.
