By Commodity News Service Canada
Winnipeg, Nov 21 – The Canadian dollar was up sharply compared to the US currency at midday Friday, lifted by positive Canadian inflation data, analysts said.
Statistics Canada said inflation was up by 0.1 per cent in October, beating expectations that inflation would drop after rising 0.2 per cent last month.
At 11:51 CST Friday, the Canadian dollar was at US$0.8897 or US$1=C$1.1240, which compares with Thursday’s North American settlement of US$0.8845 or US$1=C$1.1306.
Strength in commodity prices, which were reacting to news that Europe and China are taking measures to stimulate economic growth, added to the bullish tone.
Further support came from ideas that the positive inflation data could lead to an earlier hike in Canadian interest rates, according to traders.
However, interest rates in Canada are still not expected to rise until after the US increases their rates, which was overhanging the loonie.
The Toronto Stock Exchange was up 23.64 points, or 0.16%, at 11:51 CST Friday, to sit at 15,098.82.
