Canadian Dollar And Business Outlook

By Commodity News Service Canada

WINNIPEG, September 6 (CNS Canada) The Canadian dollar strengthened against its US counterpart Tuesday morning, still benefiting from lackluster US data.

Investors continued to weigh the chances of the US Federal Reserve raising interest rates following lower-than-expected employment data, weighing on the greenback and providing support for the loonie.

Traders now see a 21 per cent chance of a rate hike this month, down from 24 per cent, following Friday’s numbers. December’s odds lowered as well, edging down to 50.6 per cent from 53.6 per cent.

At 8:56 CDT Tuesday, the Canadian dollar was at US$0.7741 or US$=C$1.2918, which compares with Friday’s North American close of US$0.7698 or US$1=C$1.2990.

The TSX was down 5.55 points, or 0.04 per cent, at 8:56 CDT Tuesday morning to sit at 14,790.15.