Canadian Dollar And Business Outlook

By Commodity News Service Canada

WINNIPEG, January 15 The Canadian dollar was trading at a softer level versus its US counterpart at 8:55 CST Tuesday, taking direction from declining outside equity markets, analysts said.

At 8:56 CST Tuesday, the Canadian dollar was at US$1.0144 or US$=C$0.9858, which compares with Monday’s North American close of US$1.0165 or US$=C$0.9838.

Weak crude oil values also put downward pressure on the Canadian currency. But, strong gold prices helped to limit the Canadian dollar’s downside potential, market watchers noted.

Sales data in the US was mixed, and provided little direction for the Canadian currency. US retail sales increased, while wholesale sales declined in December.

The Canadian Real Estate Association reported Tuesday that national home sales activity was little changed on a month-over-month basis in December. The report also had little effect on the direction of the Canadian dollar, traders said.

The TSX was down 28.59 points, or 0.23%, at 8:56 CST Tuesday morning to sit at 12,574.50.