TORONTO – The Canadian dollar was higher Wednesday morning amid rising commodity prices and strong housing data.
The loonie was up 0.2 of a cent to 95.82 cents US as Statistics Canada reported that contractors took out $6.5 billion worth of building permits in September, up 1.7 per cent from August. That was much higher than the 0.6 per cent rise that economists had expected.
Traders also looked ahead to Thursday and the next scheduled interest rate meeting of the European Central Bank amid hopes that the latest economic data will persuade the ECB to cut its key rate to 0.25 per cent.
The EU’s statistics office said that retail sales across the 17-country eurozone fell 0.6 per cent in September from the month before.
And Markit, the financial information company, also revealed that its composite purchasing managers’ index, a broad gauge of economic activity for the eurozone, faltered in October. The October PMI reading of 51.9 points was down from September’s 27-month high of 52.2. Still, it’s above the 50 threshold indicating expansion.
The figures suggest the European recovery lacks strength and is vulnerable to setbacks.
Commodity prices improved with December crude on the New York Mercantile Exchange gained 63 cents to US$94 after dropping to a five-month low of US$93.37 amid concerns about rising supplies in the U.S.
U.S. crude stockpiles have increased in each of the past six weeks, mostly because of rising domestic production, and were more than 10 per cent above their five-year average near the end of October.
The figures from the Energy Information Administration due later Wednesday are expected to show a further increase of 2.5 million barrels in crude stocks.
December copper added a penny to US$3.27 while December gold rose $9 to US$1,317.10.
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