Canadian Dollar And Business Outlook

By Commodity News Service Canada

Winnipeg, January 29 – The Canadian dollar opened stronger against
its US counterpart on Wednesday, as traders position themselves ahead
of the US Federal Reserve’s interest rate announcement in the
afternoon, industry watchers said.
The Fed tapered asset purchases by US$10 billion a month in
December, and currently spend US$75 billion on their monthly bond-
buying program. Some economists are expecting the Fed to announce today
that they will cut another US$10 billion.
Spillover from the gains seen by gold added to the bullish tone,
participants said.
At 8:40 CST Wednesday, the Canadian dollar was at US$0.8988 or
US$=C$1.1125 which compares with Tuesday’s North American close of
US$0.8964, or US$=C$1.1156.
No major Canadian economic data is scheduled to be released on
Wednesday.
The TSX was down 77.16 points Wednesday morning at 8:40 CST, to
sit at 13,610.50.