Loonie Dips Versus Major Counterparts, Friday, May 30, 2008 2:36:12 PM
The loonie slid against the euro and greenback on Friday in New York. The slip came as traders weighed a report showing the Canadian economy contracted unexpectedly during the first-quarter of 2008.The report showed that Canadian GDP edged down 0.1 percent in the first quarter after a 0.2 percent increase in the fourth quarter. GDP fell by 0.2 percent in March following a 0.3 decrease in February and a 0.6 percent increase in January.
This was the first contraction since the second quarter of 2003. The weakness was partly due to widespread cutbacks in manufacturing.
The Canadian dollar fell to an 11-day low versus the US dollar on Friday. The loonie dropped to .9978 by 8:30 am ET, before paring its gains later in the day reaching .9934 in the afternoon.
Investors pondered a US consumer sentiment index for May being unexpectedly raised upward and a report showing personal income and spending rose as expected in April.
The loonie retreated from Thursday`s 2 1/2-month high against the euro on Friday. The Canadian dollar declined to 1.5489 just before Noon ET, down from 1.5307 in the early morning.
Traders digested two reports showing Italian consumer prices rose more than expected in May.
posted by Kalin Tasev @ 11:16 AM
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