Canadian dollar and business outlook

By Commodity News Service Canada

WINNIPEG, February 19 The Canadian dollar was sharply lower against the US dollar Wednesday morning, undermined by disappointing Canadian economic data, analysts said.

According to Statistics Canada, wholesale sales dropped 1.4 per cent, to C$49.6 billion in December. Sales were at their lowest level in six months, StatsCan added.

At 8:40 CST Wednesday the Canadian dollar was at US$0.9082 or US$=C$1.1011, which compares with Tuesday’s North American close of US$0.9132 or US$=C$1.0951.

Disappointing US housing starts data were also bearish, with starts falling to an annualized rate of 880,000, below expectations of 899,000.

Traders were looking ahead to Wednesday afternoon, when the US Federal Reserve will release minutes from its latest meeting, participants said.

The TSX was up 22.71 points, or 0.16%, at 8:40 CST Wednesday morning to sit at 14,077.47.