Canadian Financial Close: Loonie keeps getting stronger

BoC interest rate announcement tomorrow

By MarketsFarm

WINNIPEG, June 2 (MarketsFarm) – The Canadian dollar was stronger on Tuesday, hitting a three-month high ahead of tomorrow’s interest rate announcement from the Bank of Canada.

The loonie finished the day at US$0.7399 or US$1=C$1.3515, compared to Monday when it closed at US$0.7337 or US$1=C$1.3630.

It’s widely expected that incoming Bank of Canada Governor Tiff Macklem will freeze the key interest rate at 0.25 per cent. Today marked the final day of Stephen Poloz’s term as governor.

Benchmark crude oil prices pushed upward on Tuesday ahead of OPEC+ video conference on extending current production cuts that’s reportedly scheduled for June 4. Also, the easing of lockdown restrictions, particularly in the United States, was seen as a boost in consumer demand.

Brent crude oil gained US$1.31 close at US$39.63 per barrel. West Texas Intermediate (WTI) crude oil rose US$1.45 at US$36.89 per barrel. However, Western Canadian Select (WCS) was much more subdued with only an increase of nine cents at US$29.15 per barrel.

The TSX Composite Index was up 158.15 points on Tuesday, to close at 15,394.36 as hopes of an economic recovery spurred the North American stock markets.

Gold dropped US$13.01 at US$1,726.55 per ounce.

Canada’s agricultural sector fared as follows:

Buhler Industries unchanged at $ 2.49
Linamar Corp. up $ 1.06 at $ 40.05
Maple Leaf Foods dn $ 0.27 at $ 25.52
Nutrien Ltd. up $ 1.73 at $ 49.28
Ritchie Bros Auctioneers Inc. dn $ 1.13 at $ 58.09
Rocky Mountain Dealerships Inc. up $ 0.11 at $ 4.65
(All figures are in Canadian dollars.)

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