Canadian dollar and business outlook

By Commodity News Service Canada
WINNIPEG, September 15 – The Canadian dollar strengthened
against its US counterpart Wednesday morning as Statistics Canada
released reports on manufacturing and international transactions.

At 8:40 a.m. CDT the Canadian dollar was at US$0.7566 or C$1.3217
which compares with Tuesday’s North American close of US$0.7549, or
C$1.3247.

On Thursday the US Federal Reserve will decide if it will increase
interest rates for the first time in ten years, and currency markets
poised themselves ahead of the decision.

Manufacturing sales rose 1.7 per cent to C$52.2 billion in July
as sales in the motor vehicle parts and motor vehicle assembly
industries increased. The gain follows revised increases of 0.7 per
cent in May and 1.5 per cent in June, Statistics Canada said in a
report on Wednesday.

According to StatsCan, the advance in July mostly reflected a
higher volume of goods sold, as constant dollar sales increased 1.1
per cent.

In other Canadian economic data, foreign investors reduced
their holdings of Canadian securities by C$10.1 billion in July,
mainly in the form of equity instruments. At the same time, Canadian
holdings of foreign securities edged down as sales of equity
securities were almost completely offset by purchases of debt
securities, Statistics Canada said on Wednesday.

The TSX was stronger in early activity, up 105.4 points at 8:40
a.m. CDT to sit at 13,568.08.