Canadian dollar and business outlook

By Commodity News Service Canada

WINNIPEG, Jan. 15 The Canadian dollar was stronger relative to the US dollar Thursday morning, with a rebound in crude oil prices behind the gains, analysts said.

At 8:46 CST Thursday, the Canadian dollar was at US$0.8385 or US$=C$1.1926, which compares with Wednesday’s North American close of US$0.8372 or US$1=C$1.1945.

Wednesday’s disappointing US retail sales data was also supporting the Canadian dollar, though news that the US economy grew at a moderate pace last month was bearish.

Currency markets were very volatile Thursday morning, reacting to the Swiss central bank’s unexpected decision to get rid of a previously imposed limit on the franc’s strength against the euro, brokers added.

There was no significant Canadian economic data released Thursday.

The TSX was up 70.67 points, or 0.50%, at 8:46 CST Thursday morning to sit at 14,155.10.