Canadian Dollar And Business Outlook

By Commodity News Service Canada

WINNIPEG, MB, June 29, 2016 (CNS Canada) The Canadian dollar strengthened against its US counterpart Wednesday morning as markets stabilize after Britain’s vote to leave the European Union (Brexit).

The gains followed two days of losses that wiped out $3 trillion from global stock markets as the Brexit vote last week left the outlook for Europe in limbo.

Gold stocks in Canada dropped as demand for safe-havens eased, giving the loonie some support. Oil prices rose, boosted by a weaker US dollar and fears of a strike by oil workers in Norway.

Even though markets are settling now, investors expect continued volatility as ramifications of Britain’s exit from the European Union become clearer.

At 8:48 CDT Wednesday, the Canadian dollar was at US$0.7684 or US$=C$1.3014, which compares with Tuesday’s North American close of US$0.7672 or US$1=C$1.3035.

The TSX was up 133.21 points, or 0.95 per cent, at 8:48 CDT Wednesday morning to sit at 13,975.90.