Canadian Dollar and Business Outlook: Loonie dips prior to key interest rate announcement

Crude mixed prior to OPEC+ meeting

By MarketsFarm

WINNIPEG, June 3 (MarketsFarm) – The Canadian dollar was slightly lower on Wednesday morning prior to the Bank of Canada making its announcement on interest rates.

As of 8:37 CDT, the Canadian dollar was at US$0.7389 or C$1.3534, compared to Tuesday’s close of US$0.7399 or C$1.3515.

In Tiff Macklem’s first day as the governor of the Bank of Canada, it’s widely believed he will announce a freeze in the central bank’s key interest rate of 0.25 per cent. Macklem is scheduled to speak with media at 9 a.m. Central.

Benchmark crude oil prices were either side of steady on Wednesday morning following reports that OPEC+ members Iraq, Kazakhstan and Nigeria failed to meet their production cuts. Meanwhile, Saudi Arabia and Russia reportedly reached a preliminary agreement to extend their production cuts to the end of July, according to Reuters. The OPEC+ alliance is said to be having a teleconference on Thursday to discuss extending production cuts.

Brent crude oil was down 23 cents at US$39.34 per barrel. West Texas Intermediate (WTI) inched upward four cents at US$36.85 per barrel. Western Canadian Select (WCS) lost 22 cents at US$28.93 per barrel.

At the opening, the TSX/S&P Composite Index was up 133.76 points at 15,528.12 on hopes that an economic recovery is on its way.

Gold fell US$17.67 at US$1,710.67 per ounce.

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