By Commodity News Service Canada
Winnipeg, June 17 – The Canadian dollar eased against its US counterpart at midday Monday, as traders were being cautious ahead of Wednesday’s US Federal Reserve announcement, analysts said.
Some people are concerned that recent positive economic data will cause the US Federal Reserve to start backing off of some of their stimulus programs.
At 12:00 CDT Monday, the Canadian dollar was trading at US$0.9816, or US$1=C$1.0187, which compares with Friday’s North American close of US$0.9834, or US$=C$1.0169.
Weakness seen in gold prices also put some downward pressure on the Canadian dollar.
However, strength seen in other commodities, including crude oil, and in North American equity markets limited the loonie’s downside potential.
The Toronto Stock Exchange was up 121.25 points, or 0.99%, at 12:00 CDT Monday, to sit at 12.308.61.
