Canadian Dollar And Business Outlook

By Commodity News Service Canada

Winnipeg, May 6 – The Canadian dollar was higher against its American counterpart Wednesday morning, on the back of surging oil and gold prices.

At 8:58 CDT Wednesday morning, the loonie was up 0.0064 of a cent to US$0.8351 or US$1 = C$1.1975. Alberta’s new Premiere has said she will work with the province’s oil companies. However, Rachel Notley’s NDP government is expected to initiate a review of Alberta’s energy royalties. Her surprising majority victory yesterday ended 40 years of conservative rule in the province.

Enbridge is reporting a loss of C$468 million in profit for the quarter ended March 31. The company blames the drop on plummeting oil and gas prices.

Loblaw Companies Ltd. says its net income this first quarter was up by 21.7 percent from the same time last year, rising to C$146 million. The company said its decision to take over Shoppers Drug Mart, the country’s largest pharmacy retailer, was a big reason for the increase.

On the commodity markets the June crude contract in New York rose US$1.43 to US$61.83 a barrel. The June gold contract jumped $1.80 to US$1,1195.00 an ounce.

At 8:58 CDT Wednesday morning, the TSX was down 172.22 points to 15,001.72.