Canadian dollar and business outlook

By Phil Franz-Warkentin

Glacier FarmMedia | MarketsFarm – The Canadian dollar was weaker Tuesday morning, with positioning ahead of Wednesday’s Bank of Canada policy announcement behind some of the activity.

At 8:45 a.m. CST the Canadian dollar was trading at US$0.7057 or US$1=C$1.4170 which compares with Monday’s close of US$0.7077 or US$1=C$1.4130.

Average market expectations ahead of Wednesday’s announcement call for a 50-basis point cut to Canada’s key overnight interest rates. The United States Federal Reserve announces its own monetary policy announcement next week.

Crude oil was holding steady Tuesday morning, with West Texas Intermediate crude oil up by 0.15 per cent at US$68.47 per barrel.

The TSX was softer, losing 28.72 points at 8:45 CST to trade at 25,596.70.