Canadian dollar and business outlook

By Commodity News Service Canada

WINNIPEG, October 23 – The Canadian dollar weakened against its
US counterpart Friday as Statistics Canada released data on the
Consumer Price Index, which came in below analyst expectations, and
as crude oil handed back gains.

At 9:40 a.m. CDT the Canadian dollar was at US$0.7601 or C$1.3156
which compares with Thursday’s North American close of US$0.7630,
or C$1.3107.

New York Mercantile crude oil futures were down in early
activity, falling US$0.95 to sit at US$44.43 a barrel in the December
contract.

In Canadian domestic data, The Consumer Price Index (CPI) rose
1.0 per cent in the 12 months to September, after increasing 1.3 per
cent in August, Statistics Canada said in a report on Friday.

The smaller year-over-year increase in the CPI in September
compared with August was mostly attributable to an 18.8 per cent
year-over-year decline in gasoline prices in September, following
a 12.6 per cent decrease the previous month, according to StatsCan.

The TSX was stronger in early activity, up 99.70 points at 9:40
a.m. CDT to sit at 13,977.81.