Canadian dollar and business outlook

By Commodity News Service Canada

WINNIPEG, September 30 – The Canadian dollar strengthened
against its US counterpart Wednesday, as US markets were concerned
about bond-liquidity and the country’s economy.

At 8:40 a.m. CDT the Canadian dollar was at US$0.7474 or C$1.3379
which compares with Tuesday’s North American close of US$0.7453, or
C$1.3418.

US bankers, investors, and regulators from the Federal Reserve
have expressed concerns about bouts of bond-market volatility within
the country.

The Fed’s Willian Dudley said volatility within markets was not
necessarily caused by regulatory reforms, but a rise in rapid
electronic trading may have played a bigger role

In Canadian domestic data, real gross domestic product grew 0.3
per cent in July, after rising 0.4 per cent in June. The growth in
June and July followed five consecutive monthly declines from January
to May, Statistics Canada said in a report on Wednesday.

The TSX was stronger in early activity, up 154.3 points at 8:40
a.m. CDT to sit at 13,191.23.