Canadian dollar and business outlook

By Phil Franz-Warkentin

Glacier FarmMedia MarketsFarm – The Canadian dollar was firmer Wednesday morning as monthly inflation data beat expectations.

At 8:39 a.m. CST the Canadian dollar was trading at US$0.7462 or US$1=C$1.3401, which compares with Tuesday’s close of US$0.7453 or US$1=C$1.3417.

Canada’s gross domestic product grew by 0.2 per cent in November after holding nearly unchanged the three previous months, according to a report from Statistics Canada. The manufacturing sector was up by 0.9 per cent in November, while wholesale trade increased by 0.7 per cent. Early data for December points to a 0.3 per cent rise in real GDP.

The United States Federal Reserve will release its latest policy announcement later in the day, with general expectations that the Fed will hold rates steady this month.

Crude oil was softer in early activity, with West Texas Intermediate crude oil down by 0.54 per cent at US$77.40 per barrel.

The TSX was holding steady, up by 5.90 points at 8:39 CST, trading at 21,233.77 points.