Futures and Commodity Market News

Sun May 11, 2008

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WINNIPEG, MB, May 07, 2008 (Resource News International via COMTEX) -- The Canadian dollar was trading at a slightly firmer level versus the US currency at mid-session. Ongoing strength in global crude oil prices provided a firm floor for the currency, market watchers said.

The Canadian dollar at 12:10 CT (1910 GMT) was trading at 99.74 US cents or C$1.0026. This was fractionally weaker than an early Wednesday morning quote of 99.76 US cents or C$1.0024 and compares with Tuesday's North American close of 99.69 US cents or C$1.0031.

On Wednesday, crude oil futures were sitting above the US$122.00 a barrel mark, with some analysts predicting values will rise to US$125.00 per barrel by the end of the week.

While firm crude oil prices would be beneficial to the commodity-linked Canadian dollar, there is concern that high values will eventually weigh on the US economy and in turn Canada's economy, according to traders.

Losses in gold values, meanwhile, tempered the Canadian dollar's strength, brokers said.

There were no significant Canadian economic data released on Wednesday.

On Thursday, Canada will release April housing starts data. The key data release for the week however, will come on Friday, when April jobs data is reported. Market watchers noted that activity in the Canadian dollar may be quieter than normal Wednesday due to position evening ahead of Friday's release.

The Toronto Stock Exchange Composite Index (TSX) was trading at a fractionally higher level at midday Wednesday, up 0.70 points at 14,415.00 at 12:11 CT (1911 GMT).

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