Canadian Dollar and Business Outlook

By Commodity News Service Canada

WINNIPEG, March 16 (CNS Canada) The Canadian dollar was slightly weaker Wednesday morning, although activity was subdued as currency traders awaited news from the US Federal Reserve.

At 8:44 CDT Wednesday morning the Canadian dollar was at US$0.7476 or C$1.3376 which compares with Tuesday’s North American close of US$0.7484 or C$1.3362.

The US Fed is set to make its latest monetary policy announcement later in the day. Analysts generally expect the Fed to keep rates steady, but will be following any statements closely for signs of future rate increases.

In domestic data, Canadian manufacturing sales were up by 2.3% in January, hitting a record C$53.1 billion, said Statistics Canada. The motor vehicle, food, and motor vehicle parts sectors saw the largest increases.

Foreign investors increased their holdings of Canadian securities by C$13.5 billion in January, while Canadians reduced their holdings of foreign securities by C$13.8 billion, reported StatsCan.

The TSX was stronger, up 56.40 points at 8:45 CDT to sit at 13,456.71.