TSX surges on higher commodity prices, GDP data

June 1, 2009

1 June 2009

TSX surges on higher commodity prices, GDP data

The following is excerpted from today's edition of “globeandmail.com”.

The Canadian dollar continued its march toward parity with its U.S. counterpart Monday, after the greenback lost ground to other world currencies as investors looked to diversify their holdings.

“The Canadian dollar is gaining considerably, but quite frankly it's a U.S. dollar story,” said Millan Mulraine, an economic strategist at TD Securities. “If you look across the board, the U.S. dollar is weak again against most other currencies.”

The Canadian dollar gained 0.81 cent to 92.41 cents (U.S.). The euro, meanwhile, jumped above $1.42 (U.S.) for the first time this year, as investors stepped away from the perceived safety of the U.S. dollar….

A weaker U.S. dollar tends to drive commodity prices higher, which Mr. Mulraine said should help Canadian energy producers. That should help offset the damage done to manufacturers, whose products become more expensive elsewhere.

His forecast calls for the U.S. and Canadian currencies to reach parity – the point at which they trade one-for-one – by the end of the year….


Topic(s): 
Canadian Economy & Politics
Information Source: 
Canadian News Channel
Document Type: 
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