Canadian dollar and business outlook

By Commodity News Service Canada

WINNIPEG, May 11 The Canadian dollar was up slightly against the US dollar Monday morning, lifted by sentiment that the Canadian currency is oversold, analysts said.

At 8:53 CDT Monday, the Canadian dollar was at US$0.8282 or US$=C$1.2074, which compares with Friday’s North American close of US$0.8271 or US$1=C$1.2090.

Easing concerns about the Bank of Canada making further interest rate cuts were also supportive, as overnight index swaps were positive, according to market watchers.

However, weakness in crude oil values limited the upside. A move away from riskier assets amid concerns about the economic situation in Greece was also bearish.

There was no significant Canadian economic data released Monday. The New Housing Price Index report and manufacturing figures will be released later in the week.

The TSX was up 37.53 points, or 0.25%, at 8:53 CDT Monday morning to sit at 15,207.55.