Canadian loonie up following strong commodity prices, fewer U.S. jobless claims

TORONTO – The Canadian dollar was higher Thursday as commodities strengthened for a second day amid strong employment data from the U.S.

The loonie was ahead 0.49 of a cent to 97.99 cents US as jobless claims in the U.S. dipped by 16,000 from a revised 355,000 in the previous week to 339,000. The results were better than the expected 350,000 analysts had been predicting, and the lowest level it’s been in six weeks.

The June crude contract on the New York Mercantile Exchange gained 32 cents to US$91.75 a barrel after advancing more than $2 on Wednesday in the wake of data showing a much weaker than forecast rise in U.S. inventories last week.

May copper gained eight cents to US$3.24 a pound after running up six cents Wednesday after Goldman Sachs said the outlook for copper prices are expected to rebound in the next three months due to Chinese growth in the second half of the year.

Copper and oil have also risen on hopes that the European Central Bank will cut interest rates in order to stimulate the economy next Thursday.