Canadian dollar and business outlook

Glacier FarmMedia | MarketsFarm — The Canadian dollar was stronger Monday morning, posting solid gains relative to its United States counterpart to start the week.

At 8:47 a.m. CST the Canadian dollar was trading at US$0.7011 or US$1=C$1.4263 which compares with Friday’s close of US$0.6928 or US$1=C$1.4435.

Donald Trump takes office as the next U.S. President today and had promised to impose strict tariffs against Canadian imports as one of his first orders of business. However, there were reports Monday morning that Trump may avoid imposing tariffs immediately, and rather direct federal agencies to study trade polices.

Uncertainty over what Trump’s policies and resulting retaliation will mean for the global economy remains to be seen, keeping caution in the currency markets. Activity in the U.S. was subdued, with markets closed for Martin Luther King Jr. Day.

Crude oil was weaker Monday morning, with West Texas Intermediate crude oil down by 1.28 per cent at US$76.88 per barrel.

The TSX was stronger, up 105.23 points at 8:47 CST to trade at 25,173.15.