Canadian Dollar And Business Outlook

By Commodity News Service Canada


WINNIPEG, December 27 The Canadian dollar trading at a softer level compared to its US counterpart at 9:00 CST Thursday, as concerns about the impending US ‘fiscal cliff’ weighed on its value, analysts said.


US lawmakers have failed to come up with a solution to the US ‘fiscal cliff’, which would see tax hikes come into effect on January 1. General concerns are that the tax hikes would cause the US to go back into a recession.


At 9:00 CST Thursday, the Canadian dollar was at US$1.0076 or US$=C$0.9925, which compares with Monday’s North American close of US$1.0088 or US$=C$0.9913. Canadian markets were closed on Tuesday and Wednesday for Christmas Day and Boxing Day.


Soft commodity prices, including crude oil and gold, were also behind some of the losses experienced by the Canadian currency.


There was no significant Canadian economic data to report on Thursday. Statistics Canada will not release any more big economic indicators until 2013.


The TSX was down 17.30 points, or 0.14%, at 9:00 CST Thursday morning to sit at 12,353.50.