By Commodity News Service Canada
Winnipeg, June 18 – The Canadian dollar eased against its US counterpart at midday Tuesday, as traders were being cautious ahead of Wednesday’s US Federal Reserve announcement, analysts said.
The US Federal Reserve’s two-day meeting began Tuesday, and Wednesday the government agency is expected to announce whether or not they will be reducing bond purchases and stimulus programs soon.
At 11:57 CDT Tuesday, the Canadian dollar was trading at US$0.9803, or US$1=C$1.0201, which compares with Monday’s North American close of US$0.9826, or US$=C$1.0177.
Weakness seen in commodities, including gold and copper, spilled over to put further downward pressure on the value of the Canadian dollar.
Positioning ahead of new Bank of Canada governor, Stephen Poloz’s, first public speech on Wednesday was also a feature of the trade.
The Toronto Stock Exchange was up 74.02 points, or 0.60%, at 11:57 CDT Tuesday, to sit at 12,362.92.
