Canadian Dollar and Business Outlook: Trump threatens Canada with 35 per cent tariff

Glacier FarmMedia | MarketsFarm – Mixed economic news did little to move the Canadian dollar in any direction on Friday morning.

The loonie was at US$0.7306 or US$1=C$1.3687 as of 8:19 a.m. CDT, compared to Thursday’s close at US$0.7308 or US$1=C$1.3683.

United States President Donald Trump said on Thursday that he plans to impose a blanket 35 per cent tariff on Canadian imports and will increase the levies if Canada retaliates. Prime Minister Mark Carney said Canada will negotiate with the U.S. prior to a revised deadline of Aug. 1.

Statistics Canada reported today that Canada added 83,100 jobs in June, exceeding expectations and dropping the unemployment rate to 6.9 per cent. Economists believe the chances of a rate cut from the Bank of Canada at their July 30 rate announcement have been diminished.

The United States Dollar Index improved 0.18 of a point at 97.83.

Crude oil prices were higher due to summer demand and potential U.S. sanctions against Russia. The International Energy Agency also forecast a tighter global oil market than expected and Russia said it plans on compensating for excess oil production, which may include a gasoline export ban.

Brent crude oil was up US$0.82 per barrel at US$69.46/barrel. West Texas Intermediate gained US$0.81 at US$67.38/barrel.

The TSX/S&P Composite Index was down 71.96 points at 27,010.34.

Gold jumped US$39.40 per ounce at $3,365.10.