Prime News: Canadian dollar firms after weak US data, Fed meeting

The Canadian dollar remained stable against the US dollar Wednesday after disappointing US growth data and Federal Reserve downgraded economic outlook.

The US economy marginally grew in the 1st quarter, climbing at 0.2% annual rate.

The Fed meeting was it was not as dreadful as the projections would have us believe… ”much of the data misses have been the result of transitory effects, predominantly weather related,” said Jack Spitz, Managing Director of Foreign Exchange at National Bank Financial.

The loonie ended at 83.17 US cents from yesterday’s 83.13 U.S. cents. Since a sudden rate cut in January, the currency had touched its sturdiest level.

In Canada, producer prices rose 0.3% in March from February, amplified by higher prices for energy and petroleum products.

The markets will await the country’s economic growth data for February due Thursday.

The material has been provided by InstaForex Company – www.instaforex.com

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