(The Canadian Press) TORONTO - The Canadian dollar was slightly lower as data showed the Canadian economy contracted in June.
The loonie was off 0.03 of a cent to 94.93 cents US as Statistics Canada reported that gross domestic product in June shrank by 0.5%, which was in line with economists' expectations.
At the same time, GDP grew at an annualized rate of 1.7%, higher than the 1.6 % pace that was forecast.
Economists had expected the economy would hit a rough patch in June, largely because of severe flooding in Alberta and a construction sector strike in Quebec.
At the same time, first quarter growth was revised downward to 2.2% from 2.5%.
The data came out a day after U.S. data showed the American economy grew at a better than expected pace of 2.5% in the second quarter. It was originally thought the economy only grew by 1.7%.
Markets have been rattled this week by the prospect of a U.S.-led punitive strike against Syria after an alleged chemical weapons attack. The international aid group Doctors Without Borders says at least 355 people were killed in the Aug. 21 attack in a suburb of the Syrian capital of Damascus.
UN investigators are currently in Syria gathering evidence about the attack.
In a surprise move, the British parliament voted late Thursday against military action in Syria, whittling down the core of the planned coalition to the United States and France. Italy and Germany have said they won't take part in any military action.
The British vote ratcheted up pressure on U.S. President Barack Obama, who is also facing domestic skepticism about military intervention in Syria.
Obama appeared undeterred by the difficulties forming an international coalition, and advisers said he would be willing to retaliate against Syria on his own.
Commodities also pressured the loonie as easing concerns about international intervention in Syria pushed oil prices lower for a second day.
The October crude contract on the New York Mercantile Exchange lost 93 cents to US$107.87 a barrel.
Syria is not a major oil producer but a widening conflict there could affect major producers in the region or disrupt supply routes.