Canadian Financial Close: Loonie eases back
BoC, Fed set to make rate announcements tomorrow
By Glen Hallick
Glacier Farm Media | MarketsFarm – The Canadian dollar dipped on Tuesday due to pressure from a stronger United States dollar. However, increases in crude oil and positioning ahead of two interest rate announcements tempered the losses.
The loonie closed on Tuesday at US$0.6947 or US$1=C$1.4394, compared to Monday’s finish of US$0.6954 or US$1=C$1.4381. On the U.S. Dollar Index, the greenback advanced 0.540 of a point at 107.700.
Benchmark crude oil prices were higher on Tuesday after the Trump administration said it will very likely proceed with 25 per cent tariffs on imports from Canada and Mexico effective Feb. 1.
Brent crude oil rose 56 cents at US$77.564 per barrel and West Texas Intermediate added 52 cents at US$73.69.
The Bank of Canada will announce its next interest rate move on Wednesday morning, and the U.S. Federal Reserve makes its announcement that afternoon. Analysts are expecting a 25 basis-point cut from the BoC and for the Fed to freeze its rates.
The TSX Composite Index gained 130.30 points to close Tuesday at 25,419.45. In the U.S. markets, the Nasdaq regained more than half of the 612 points it lost in Monday’s tech stock selloff.
Gold jumped US$32.60 at US$2,771.00 per ounce.
Canada’s agricultural sector fared as follows:
Buhler Industries up $ 0.06 at $ 3.45 Farmers Edge Inc. unchanged at $ 0.345 Linamar Corp. dn $ 0.11 at $ 58.41 Maple Leaf Foods dn $ 0.17 at $ 21.62 Nutrien Ltd. unchanged at $ 75.50 RB Global Inc. dn $ 1.09 at $130.14
(All figures are in Canadian dollars)
