Canadian dollar and business outlook

By Commodity News Service Canada

WINNIPEG, October 20 – The Canadian dollar strengthened against
its US counterpart Tuesday as the outcome of a federal election
solidified.

At 9:00 a.m. CDT the Canadian dollar was at US$0.7713 or C$1.2965
which compares with Monday’s North American close of US$0.7681, or
C$1.3019.

After the results of the Canadian election were announced-with
Justin Trudeau leading a majority Liberal government-the Canadian
dollar initially reacted by moving lower.

However, the loonie turned higher as currency markets mulled
over what a Liberal victory means, especially as the party has focused
much of its platform on fiscal stimulus.

In Canadian domestic data, pipelines net receipts of crude oil
and condensates, and other liquefied petroleum products reached 35.8
million cubic metres in August, up 7.7 per cent from the same month
last year, Statistics Canada said in a report on Tuesday.

In other domestic data, wholesale sales edged down 0.1 per cent
to C$55.3 billion in August. Declines in four subsectors, in
particular the machinery, equipment and supplies subsector,
accounted for the decrease. Higher sales in the miscellaneous
subsector partially offset these declines, according to StatsCan.

The TSX was stronger in early activity, up 76.79 points at 9:00
a.m. CDT to sit at 13,835.17.