Canadian dollar and business outlook

By Commodity News Service Canada

WINNIPEG, Jan. 19 – The Canadian dollar was firmer Tuesday morning, as the currency continued to see some consolidation around the 13 year lows hit recently.

At 8:57 CST Tuesday morning the Canadian dollar was at US$0.6884 or C$1.4526 which compares with Monday’s North American close of US$0.6870, or C$1.4557.

Crude oil prices were down Tuesday morning, which did weigh on the energy-linked Canadian currency. However, equity markets were mostly higher.

Canadians invested C$16.5 billion in foreign securities in November, which was a new record, according to Statistics Canada. Meanwhile, foreign investment in Canadian securities slowed to only C$2.6 billion, from C$19.1 billion the previous month.

Traders are already positioning themselves ahead of the Bank of Canada interest rate announcement on Wednesday. Some economists are anticipating a rate cut, while others expect the bank will hold its key overnight rate unchanged at 0.5%.

The TSX was stronger, up 116.25 points at 8:57 CST to sit at 12,058.25.