Canadian Dollar and Business Outlook: Loonie down, gold freefalls

Glacier FarmMedia MarketsFarm – The Canadian dollar retreated on Tuesday morning following the release of economic data from Statistics Canada (StatCan).

The loonie was at US$0.7280 or US$1=C$1.3736 as of 8:33 a.m. CDT, compared to US$0.7322 or US$1=C$1.3658 on Monday. StatCan reported the economy grew by 0.2 per cent in February compared to the month before to go along with a preliminary estimate of unchanged in March. Canada’s gross domestic product (GDP) is expected to rise at an annualized rate of 2.5 per cent in the first quarter of 2024, just below the Bank of Canada’s forecast at 2.8 per cent.

The United States Dollar Index was up 0.42 of a point at 106.00.

Crude oil prices were lower once again as Israel and Hamas sit down for peace talks in Cairo. Brent crude oil declined US$0.35 at US$88.05 per barrel. West Texas Intermediate (WTI) dropped US$0.36 at US$82.27/barrel.

The TSX/S&P Composite Index lost 120.40 points at 21,891.22.

Gold tumbled US$44.00 at US$2,313.70 per ounce, largely due to positive sentiment in the markets and a greater appetite for risk.