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Canadian Dollar And Business Outlook

| 1 min read

By Commodity News Service Canada

WINNIPEG, January 7 The Canadian dollar was trading at a slightly firmer level versus its US counterpart at 8:45 CST Monday, as traders speculated that the European Central Bank is prepared to cut interest rates, analysts said.

At 8:45 CST Monday, the Canadian dollar was at US$1.0133 or US$=C$0.9869, which compares with Friday’s North American close of US$1.0131 or US$=C$0.9871.

However, worries that the US Federal Reserve could end its federal bond-buying stimulus program in the second half of 2013 limited the Canadian dollar’s upside potential.

Declining commodity prices, including crude oil, gold and copper also undermined the value of the Canadian currency, traders said.

There was no significant Canadian economic data to report on Monday.

The TSX was down 81.17 points, or 0.65%, at 8:45 CST Monday morning to sit at 12,459.64.