Canadian Dollar and Business Outlook: Loonie steps further away from 70 U.S. cents
U.S. Federal Reserve expected to cut its key rates today
By Glen Hallick
Glacier FarmMedia MarketsFarm – The Canadian dollar was a pinch lower on Wednesday morning, due to pressure from a strong United States dollar.
As of 8:41 am CST, the loonie was at US$0.6987 or US$1=C$1.4312 compared to Tuesday’s close of US$0.6991 or US$1=C$1.4305. On the U.S. Dollar Index, the greenback nudged up 0.077 of a point at 106.740.
The U.S. Federal Reserve is set to make its interest rate announcement at 1 pm CST, with analysts projecting a cut of 25 basis points.
Benchmark crude oil prices were up slightly on Wednesday morning, due to a 4.7 million-barrel draw on U.S. stockpiles and while the market bides its time before the Fed’s announcement
Brent crude oil added 36 cents at US$73.55 per barrel and West Texas Intermediate gained 51 cents at US$70.59.
Shortly after Wednesday’s open, the TSX/S&P Composite Index slipped 20.85 points at 25,098.86.
Gold was down US$7.50 at US$2,654.50 per ounce.
