By Malcolm Morrison TORONTO _ The Canadian dollar was lower Wednesday morning amid data suggesting the Canadian economy will improve over the next two years. The loonie was down 0.38 of a cent to 94.59 cents US as oil prices retreated and traders also awaited a slate of U.S. economic data. The Conference Board of Canada expects gross domestic product to grow by more than three per cent during 2014 following a tepid rise of just 1.8 per cent this year. And it said that even stronger growth is anticipated in 2015. "Fiscal restraint measures will start to fade and real government spending is expected to make a slight positive contribution to economic growth in the second half of 2014," the board said in a report released Wednesday. "The housing recovery will continue, as real investment in residential construction is forecast to grow by close to 30 per cent in 2014." Traders also took in data showing U.S. jobless insurance claims, which are a proxy for layoffs, fell by 10,000 last week to 316,000. Economists had expected a slight rise. At the same time, orders for American durable goods fell two per cent during October, which was in line with expectations. Excluding transportation, orders dipped 0.1 per cent. Later in the morning, a key gauge of the manufacturing sector in the U.S. Midwest is expected to show slower expansion. The Chicago purchasing managers index is expected to drop to 59 in November from 65.9 in October. The University of Michigan releases its latest reading on U.S. consumer-sentiment. It is expected to rise slightly to 73 during November. And finally, the U.S. Conference Board will release its leading economic indicators report. That data gives an indication on where the American economy is heading over the next six months. On the commodity markets, the January crude contract fell 98 cents to US$92.70 a barrel. Supply data for last week is expected to show a decline of 1.5 million barrels in U.S. crude oil stocks and an increase of one million barrels in gasoline stocks. Crude supplies have increased for the past nine weeks. December copper was up a penny at US$3.22 a pound while December bullion rose $10.40 to US$1,251.80 an ounce.

Source