Canadian Dollar And Business Outlook

By Commodity News Service Canada

WINNIPEG, MB, August 8, 2016 (CNS Canada) The Canadian dollar strengthened slightly against its US counterpart Monday morning, rising with crude oil prices.

Stock markets opened strong on Monday, including the Toronto Stock Exchange which rose to a new one-year high, led by energy stocks as oil prices rallied.

The US dollar also strengthened with a revived risk appetite following excellent US job data released last week, limiting the loonie’s gains.

Canadian building permits declined unexpectedly in June, with the total value of building permits issued by Canadian municipalities falling 5.5 per cent to C$6.78 billion, according to Statistics Canada, weighing on the Canadian dollar.

Weaker construction plans for multi-family dwellings and institutional buildings lead the decline. Economists had expected a 1.5 increase.

At 8:56 CDT Monday, the Canadian dollar was at US$0.7606 or US$=C$1.3148, which compares with Friday’s North American close of US$0.7596 or US$1=C$1.3164.

The TSX was up 67.82 points, or 0.46 per cent, at 8:56 CDT Monday morning to sit at 14,716.59.