Canadian forex midday: C$ down sharply

By Commodity News Service Canada

Winnipeg, July 22 – The Canadian dollar was down sharply against the US dollar at midday Wednesday, following weakness in the crude oil market, analysts said.

At 11:40 CDT Wednesday, the Canadian dollar was trading at US$0.7675 or US$1=C$1.3029, which compares with Tuesday’s North American close of US$0.7723 or US$1=C$1.2948.

Strength in the US dollar index and ongoing expectations that the US Federal Reserve will raise interest rates later this year were also bearish.

The selling was also linked to last week’s decision by the Bank of Canada to cut interest rates to help stimulate growth and avoid a recession, brokers noted.

There was no significant Canadian economic data released on Wednesday. Thursday’s Canadian retail sales data will help provide direction for the loonie.

The Toronto Stock Exchange was down 66.00 points, or 0.46%, at 11:40 CDT Wednesday, to sit at 14,310.24.