Canadian Dollar And Business Outlook

By Commodity News Service Canada

Winnipeg, May 20 – The Canadian dollar was slightly higher against its American counterpart Wednesday morning, as gains in crude oil offset global worries over the deteriorating financial situation in Greece.

At 8:50 CDT Wednesday morning, the loonie was up 0.0005 of a cent to US$0.8181 or US$1 = C$1.2223. The euro hit a two-week low after a Greek official told the International Monetary Fund the country might not be able to make an upcoming repayment. Greece says it hopes to have a deal by June 5 so it can make a payment to the IMF.

The recovery in the oil sector has stalled somewhat. Although prices have climbed above the US$55 mark, they still seem unable to reach the $60 threshold. Analysts say profit-taking and the strength of the US dollar are partly to blame.

According to the US Commerce Department, American housing starts rose 20.2 percent in April.

On the commodity markets the June crude contract in New York rose US$0.69 to US$58.68 a barrel. The June gold contract jumped $2.40 to US$1,209.10 an ounce.

At 8:50 CDT Wednesday morning, the TSX was up 17.63 points to 15,138.65.