Newspaper article The Canadian Press

Canadian Dollar Advances amid Strong U.S. Housing Data, Mixed Commodities

Newspaper article The Canadian Press

Canadian Dollar Advances amid Strong U.S. Housing Data, Mixed Commodities

Article excerpt

Loonie flat amid strong U.S. housing data

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TORONTO - The Canadian dollar closed higher Friday amid mixed U.S. economic data and commodity prices.

The loonie was up 0.17 of a cent to 92.11 cents US as American housing starts for April came in at an annualized pace of 1.072 million units, higher than the 980,000 that economists had expected.

Financial markets have been pressured this week by fresh economic worries after data showed the recovery in Europe is more fragile than thought, while retail giant and economic barometer Wal-Mart Stores delivered a disappointing outlook for the second quarter.

The University of Michigan's latest consumer sentiment index also offered a glum reading Friday morning. The index registered 81.8 for this month, well below the 85 level that had been expected and lower than the 84.1 reading in April.

It has also been a remarkable week in the fixed income area where bond yields have fallen sharply amid equity market nervousness.

"On a month-to-date basis, portfolios have shifted away from equities and into bonds, but also away from the European periphery bond market into other sovereigns," said Camilla Sutton, chief FX strategist, managing director, Scotiabank Global Banking and Markets. …

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