Canadian Dollar And Business Outlook

By Commodity News Service Canada


WINNIPEG, December 21 The Canadian dollar was trading at a weaker level compared to its US counterpart at 9:00 CST Friday, as soft Canadian inflation data weighed on its value, analysts said.


Canadian consumer prices rose 0.8% in the 12 months to November, following a 1.2% gain in October, Statistics Canada reported. The November figure fell below expectations of a 1.1% increase.


At 9:00 CST Friday, the Canadian dollar was at US$1.0067 or US$=C$0.9933, which compares with Thursday’s North American close of US$1.0129 or US$=C$0.9873.


Declining crude oil prices were also responsible for some of the softness seen in the value of the Canadian currency, traders noted.


The liquidation of positions ahead of the holiday season and in case the US fiscal cliff is not avoided, also generated some of the downward slide.


Canadian gross domestic product data had little effect on the Canadian currency, as it fell in line with pre-report expectations. According to Statistics Canada, GDP edged up 0.1% in October.


The TSX was down 24.74 points, or 0.20%, at 9:00 CST Friday morning to sit at 12,363.97.