Canadian dollar and business outlook

By Commodity News Service Canada

WINNIPEG, September 18 – The Canadian dollar firmed against its
US counterpart Friday morning as the US Federal Reserve’s decision
not to raise interest rates weighed on the greenback.

At 8:35 a.m. CDT the Canadian dollar was at US$0.7661 or C$1.3053
which compares with Thursday’s North American close of US$0.7591,
or C$1.3174.

The consumer price index rose 1.3 per cent in the 12 months to
August, matching the increase in July, Statistics Canada said in a
report on Friday.

According to StatsCan, lower energy prices continued to
moderate the year-over-year rise in the CPI, led by the gasoline
index, which was down 12.6 per cent year over year in August.

In other Canadian economic data, capital expenditures in the
oil and gas extraction industry increased for the fourth consecutive
year, rising 9.8 per cent from 2013 to C$80.7 billion in 2014.
Operating expenditures were up 5.4 per cent to C$62 billion.

The TSX was weaker in early activity, down 166.5 points at 8:35
a.m. CDT to sit at 13,620.67.