Canadian dollar falls amid lower than expected GDP data, commodities mixed

TORONTO – The Canadian dollar fell Monday, as Statistics Canada reported GDP figures that were lower than expected — a potential sign that the economy didn’t bounce back as quickly as anticipated from the harsh winter.

The loonie dropped 0.25 of a cent at 93.55 cents US.

Statistics Canada says the economy grew by 0.1 per cent in April, the same pace as in March. Economists had expected a gain of 0.2 per cent, according to Thomson Reuters.

The gains were led by wholesale and retail trade, while mining, quarrying and oil and gas extraction declined, following three months of increases.

Traders have been watching for signs that the economy moved on from the long, severe winter, which dragged consumer spending in the first quarter.

Commodity prices were mixed with August crude losing 53 cents to US$105.21 a barrel. Crude prices have declined in the past several weeks in the wake of the weaker than expected U.S. consumer data and expectations that the sectarian fighting in Iraq won‘t spread to that country’s oil-producing south.

September copper was up a penny at US$3.16 a pound, while August bullion faded $5.50 to US$1,314.50 an ounce.

The loonie has had a positive month, up about 1 1/2 cents to a six-month high as gold and oil prices rose amid geopolitical concerns in Iraq and tensions continued in Ukraine and Russia.

The loonie had also found support from stronger than expected inflation data, which raised expectations that the Bank of Canada could raise interest rates sooner than thought.