Canadian Dollar and Business Outlook: Inflation increases in May
Creates uncertainty toward another BoC rate cut
By Glen Hallick
Glacier Farm Media MarketsFarm – The Canadian dollar gained more ground on Tuesday morning, following Statistics Canada’s report on inflation.
StatCan said the consumer price index for May climbed to 2.9 per cent compared to 2.7 per cent in April. The increase ended four consecutive months of declines and may prevent the Bank of Canada implementing another interest rate cut come July.
As of 8:37 am CDT, the loonie was at US$0.7327 or US$1=C$1.3645 compared to Monday’s close of US$0.7319 or US$1=C$1.3648. On the U.S. Dollar Index, the greenback added 0.214 of a point at 105.335.
Benchmark crude oil prices eased back on Tuesday morning, despite tightening global supplies.
Brent crude oil lost 26 cents at US$85.75 per barrel and West Texas Intermediate was down 28 cents at US$81.35.
Shortly after Tuesday’s open the TSX/S&P Composite Index fell 99.22 points at 21,749.37.
Gold gave up US$6.10 at US$2,338.30 per ounce.
