Canadian dollar and business outlook

Glacier FarmMedia | MarketsFarm — The Canadian dollar was weaker Tuesday morning, as currency markets reacted to the latest musings from United States President Donald Trump on trade.

At 8:43 a.m. CST the Canadian dollar was trading at US$0.6938 or US$1=C$1.4413 which compares with Monday’s close of US$0.6978 or US$1=C$1.4330.

While no tariffs on Canadian imports were imposed during Trump’s first day in office, he commented to reporters while signing unrelated executive orders that “we’re thinking in terms of 25 per cent (tariffs) on Mexico and Canada because they are allowing vast number of people, Canada is a very bad abuser also, vast numbers of people to come in and fentanyl to come in.” He added that “I think we’ll do it Feb. 1.”

Canada’s consumer price index rose 1.8 per cent on an annual basis in December — down slightly from the 1.9 per cent increase the previous month.

Crude oil was weaker Tuesday morning, with West Texas Intermediate crude oil down by 2.30 per cent at US$76.09 per barrel.

The TSX was slightly stronger, up 10.20 points at 8:43 CST to trade at 25,181.78.