Canadian Forex Midday: C$ Firmer

By Commodity News Service Canada

Winnipeg, June 19 – The Canadian dollar firmed against its US counterpart at midday Wednesday, amid hopes that the US Federal Reserve will clarify whether or not they intend to slow down stimulus programs at their speech later Wednesday afternoon, analysts said.

At 11:52 CDT Wednesday, the Canadian dollar was trading at US$0.9813, or US$1=C$1.0191, which compares with Tuesday’s North American close of US$0.9794, or US$=C$1.0210.

Some of the firmness in the value of the Canadian currency was also linked to positive Canadian sales data. According to Statistics Canada, wholesale sales rose 0.2% in April to C$49 billion.

Strength in commodities, including gold, provided further support for the Canadian dollar.

However, weakness seen in crude oil and North American equity markets spilled over to limit the loonie’s upside potential.

The Toronto Stock Exchange was down 48.19 points, or 0.39%, at 11:52 CDT Wednesday, to sit at 12,319.27.