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TORONTO:  The Canadian dollar moved higher Monday morning after Statistics Canada reported the economy grew at a robust pace in the first quarter.

The loonie was up 0.77 of a cent to 95.83 cents US as the agency said gross domestic product grew at annualized rate of 6.1 per cent, better than the 5.8 per cent rate that economists had expected.

That showing followed a 4.9 per cent rise in the fourth quarter of 2009.

GDP rose 0.6 per cent in March alone, which was better than the 0.5 per cent that had been forecast.

Meanwhile, The Toronto stock market could get a slight bump in early trading Monday from higher commodity prices.

But trading could be subdued with U.S. markets closed for Memorial Day.

The rise in the loonie came a day before the Bank of Canada's announcement on interest rates, the Canadian dollar was up 0.33 of a cent to 95.39 cents US with many analysts expecting the central bank to hike rates by a quarter point.

``If the bank does the widely expected, it would mark the first tightening move by a G8 central bank since the 2008 financial crisis,'' observed BMO Capital Markets deputy chief economist Douglas Porter.

The bank has kept its key rate at 0.25 per cent since April 2009.

Prior to that announcement, investors are looking to the latest update on Canadian economic growth. Statistics Canada is expected to report before the market open that first quarter growth came in at an annualized rate of six per cent.

The week ends with the release of May employment data for both Canada and the U.S.

In electronic trading, the July crude contract on the New York Mercantile Exchange rose 46 cents to US$74.43.

Bullion prices moved slightly higher with the August gold contract on the Nymex ahead $1.50 to US$1,216.50 a barrel while copper for July was up one cent at US$3.12.

In Asia, Japan's Nikkei 225 stock average inched up 0.1 per cent amid news that industrial production in the world's No. 2 economy rose for a second straight month in April, propelled by robust growth in China and the rest of Asia.

Separately, India's economic growth accelerated to 8.6 per cent in the January-March quarter, its best in two years as Asia's third-largest economy returns to pre-crisis levels of expansion.

European bourses were mixed with Frankfurt's DAX up 0.32 per cent while the Paris CAC 40 was off 0.24 per cent.

The London market was closed for the U.K. bank holiday.

The expected tepid showing on the TSX on the final day of May trading comes as investors survey what has been a decidedly negative month as investors remained focused on Europe's debt crisis.

The market is off five per cent from the 2010 highs that were registered on April 26 on worry about slowing economic growth in the eurozone and the future of the euro currency itself.

Analysts characterized the markets as volatile and saw investors holding back as doubts remain the European Union can contain a debt crisis that has sent the euro to four-year lows.

``They are still cautious at this point,'' said Mark Tan, who helps manage about $15 billion of equities and bonds at UOB Asset Management in Singapore.

``Liquidity in the stock market is still pretty tight.''

Meanwhile, the French parliament was scheduled to go over a revised budget bill Monday ahead of its expected approval of France's share of the US$1 trillion bailout for struggling member states.

In corporate news, Bombardier Inc. (TSX:BBD.B) has been awarded a $241-million contract to supply a monorail system for the Saudi capital city's new financial district.