Canadian Dollar And Business Outlook

By Commodity News Service Canada

WINNIPEG, July 13 (CNS Canada) The Canadian dollar weakened slightly against its US counterpart Wednesday morning after investors pushed the S&P 500 and the Dow to record highs, weighing on the loonie.

Easing political tension in Japan and Britain continue to reduce uncertainty in global markets. Investors are also increasingly optimistic with the prospects of central banks providing stimulus post Brexit.

The Canadian currency has been trading rangebound awaiting the Bank of Canada’s rate decision announcement and release of its quarterly Monetary Policy Report on Wednesday.

Economists expect the central bank to maintain its overnight policy rate at 0.5 per cent, but will be paying close attention to BoC Governor Stephen Poloz’s outlook on the Canadian economy this year amid slower growth in the second quarter.

At 8:54 CDT Wednesday, the Canadian dollar was at US$0.7642 or US$=C$1.3086, which compares with Tuesday’s North American close of US$0.7675 or US$1=C$1.3030.

The TSX was up 26.09 points, or 0.18 per cent, at 8:54 CDT Wednesday morning to sit at 14,503.76.

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