Canadian Dollar And Business Outlook

By Commodity News Service Canada

Winnipeg, October 30 – The Canadian dollar opened stronger against
its US counterpart on Wednesday, as traders look ahead to the US
Federal Reserve’s policy statement in the afternoon, market watchers
said.
It’s widely expected that the Fed will announce that it will not
slow its monetary stimulus in October, due to economic uncertainty
caused by the 16-day partial shutdown of the US government earlier in
the month, analysts said.
Further strength came from weaker-than-expected US economic data.
ADP reported that private sector jobs in the US increased by 130,000 in
October, which was much lower than the 150,000 job increase economists
had forecast.
However, losses seen in commodities, including gold, crude oil and
copper, limited any further gains by the loonie.
At 8:40 CDT Wednesday, the Canadian dollar was at US$0.9566 or
US$=C$1.0453 which compares with Tuesday’s North American close of
US$0.9551, or US$=C$1.0470.
With no major Canadian economic data scheduled to be released on
Wednesday, investors are looking ahead to Thursday’s release of
Canada’s gross domestic product for August. According to economists,
it’s expected that Canada’s GDP was up 0.2% during the month.
The TSX was up 23.09 points Wednesday morning at 8:40 CDT, to sit
at 13,463.70.