By Commodity News Service Canada
WINNIPEG, Feb. 5 The Canadian dollar was firmer relative to the US dollar Thursday morning, seeing a corrective bounce after Wednesday’s declines, analysts said.
At 8:45 CST Thursday, the Canadian dollar was at US$0.8006 or US$=C$1.2491, which compares with Wednesday’s North American close of US$0.7959 or US$1=C$1.2565.
Crude oil values were also showing strength Thursday morning, which spilled over to underpin the Canadian currency.
Further support came from positive Canadian trade data. Statistics Canada said Canada’s merchandise trade deficit with the world widened to C$649 million in December, from C$355 in November. Pre-report expectations called for a deficit of C$1.2 billion.
However, ongoing worries about economic problems in Europe and China, and the negative effects weak oil prices will have on Canada’s economy, limited the upside.
The TSX was up 53.05 points, or 0.35%, at 8:45 CST Thursday morning to sit at 15,048.70.
