Canadian Dollar and Business Outlook: Loonie regaining lost ground

By Glen Hallick

Glacier Farm Media MarketsFarm – The Canadian dollar continued higher on Wednesday morning, supported by declines in the United States dollar and upticks in crude oil.

As of 8:35 am CST, the loonie was at US$0.7426 or US$1=C$1.3467 compared to Tuesday’s close of US$0.7404 or C$1.3506.

On the U.S. Dollar Index, the greenback slipped 0.118 of a point at 103.940.

Benchmark crude oil prices bumped up on Wednesday morning due to continuing Middle East tensions, but the increases were tempered by larger U.S. stockpiles.

Brent crude oil tacked on 49 cents at US$79.08 per barrel, while West Texas Intermediate gained 52 cents at US$73.83.

Statistics Canada reported international merchandise trade in December turned into a C$312 million deficit following November’s surplus of C$1.1 billion. Also, Canada’s international trade services contracted from a C$900 million deficit in November to C$700 million in December.

Shortly after Wednesday’s open the TSX/S&P Composite Index was flat with a small increase of 5.19 points at 20,962.93.

Gold added 80 cents at US2,052.20 per ounce.