Traders look to growth data
The Canadian dollar closed higher Tuesday as traders considered major Canadian corporate deal making and looked ahead to key data out at the end of the week.
The loonie rose 0.24 of a cent to 91.31 cents US.
Burger King announced it is buying Tim Hortons in a cash and stock deal worth about US$11 billion that will create the world’s third-largest quick service restaurant company .
The deal will see the parent of the U.S. firm, 3G Capital, own 51 per cent of the new entity.
Depending on the structure of the deal, it could have an impact on the dollar.
The loonie has been pushed higher in the past by big corporate deals. That’s because a foreign buyer acquiring a Canadian company will need Canadian currency to close the deal, boosting demand for the loonie on financial markets.
Meanwhile, Statistics Canada releases the June reading on gross domestic product growth on Friday.
Economists expect that Statistics Canada will report that GDP grew by 0.2 per cent in June, which would translate into annualized growth of 2.6 per cent.
In the U.S., durable goods orders in July jumped 22.6 per cent reflecting a huge jump in orders at aircraft giant Boeing. Excluding transportation, orders actually declined 0.8 per cent.
On the commodity markets, October crude in New York was 51 cents higher to US$93.86 a barrel.
September copper fell three cents to US$3.19 a pound, while December gold gained $6.30 to US$1,285.20 an ounce.
By Malcolm Morrison
THE CANADIAN PRESS—TORONTO