Canadian Forex Midday: C$ Eases

By Commodity News Service Canada

Winnipeg, December 27 – The Canadian dollar was trading at a lower level versus its US counterpart at midday Thursday, as traders were liquidating positions ahead of the new year, analysts said.

At 11:50 CST Thursday, the Canadian dollar was trading at US$1.0048, or US$1=C$0.9952, which compares with Monday’s North American close of US$1.0088, or US$=C$0.9913. Canadian markets were closed on Tuesday and Wednesday for Christmas and Boxing Day.

Concerns about the impending US ‘fiscal cliff’, as US lawmakers have not found a solution to avoid it yet, also weighed on the Canadian dollar. Some people believe that the fiscal cliff, which would implement new tax hikes on January 1, will cause the US to enter a recession.

Declines seen in crude oil values also put downward pressure on the Canadian currency, causing it to move lower.

There was no significant Canadian economic data reported on Thursday. Statistics Canada won’t release their next economic indicators until 2013.

The Toronto Stock Exchange was down 76.32 points, or 0.62%, at 11:50 CST Thursday, to sit at 12,294.48.