Canadian Dollar and Business Outlook

By Commodity News Service Canada

WINNIPEG, May 4 (CNS Canada) – The Canadian dollar was weaker Wednesday morning, hitting its lowest levels relative to its US counterpart in two weeks as domestic economic data failed to live up to expectations.

At 9:08 CDT Wednesday morning the Canadian dollar was at US$0.7802 or C$1.2817 which compares with Tuesday’s North American close of US$0.7866 or C$1.2713.

Canada’s global trade deficit widened to a record C$3.41 billion in March, according to Statistics Canada data.

Crude oil was higher Wednesday morning, which did provide some underlying support for the energy-linked currency. The gains in oil were tied to wildfires in Alberta, which have forced evacuations in Fort McMurray and halted oil production.

While oil prices may be rising, the longer term impact on Canada’s economy from the fires is expected to be bearish due to the production cuts.

The TSX was firmer, up 9.20 points at 9:08 CDT to sit at 13,716.88.