By Commodity News Service Canada
WINNIPEG, Dec. 23 – The Canadian dollar was slightly weaker Tuesday morning, despite a better-than-expected reading on the latest economic data.
At 9:08 CST Tuesday morning the Canadian dollar was at US$0.8585 or C$1.1648 which compares with Monday’s North American close of US$0.8593, or C$1.1637.
Canada’s gross domestic product grew by 0.3% in October, according to Statistics Canada. While the GDP growth was down slightly from the previous month, it was still well ahead of pre-report expectations calling for growth of only 0.1%.
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US economic data was also strong, with that country’s economy up by 5% in the third quarter, according to a US report. The resulting strength in the US dollar, amid heightened expectations for rising interest rates, accounted for some of the relative weakness in the Canadian currency, according to analysts.
Crude oil was slightly firmer Tuesday morning, which was supportive for the energy-linked Canadian currency.
With markets closing later in the week for the Christmas holiday some participants are already moving to the sidelines, which could lead to some choppiness in the currency markets.
The TSX was stronger in early activity, up 46.65 points at 9:08 CST to sit at 14,478.03.
