By Commodity News Service Canada
WINNIPEG, MB, June 7, 2016 (CNS Canada) The Canadian dollar strengthened against its US counterpart Tuesday morning, staying in sync with the prices of oil, zinc and other commodities as they strengthened.
The currency also continued to respond to US Federal Reserve chair Janet Yellen’s speech in Philadelphia on Monday.
Yellen was cautiously optimistic about the US economy, adding interest rate hikes are still likely. However, the majority of investors believe the weak US jobs report on Friday eliminated the possibility of any increase this month.
Oil prices remained consistent, despite a Saudi move to cut the price of crude to Europe, reacting to Iran’s increase in output.
West Texas Intermediate crude was up US$1.14 on the day. Prices for metals also rose, including zinc and copper.
At 8:40 CDT Tuesday, the Canadian dollar was at US$0.7814 or US$=C$1.2796, which compares with Monday’s North American close of US$0.7808 or US$1=C$1.2807.
The TSX was up 32.03 points, or 0.22 per cent, at 8:40 CDT Tuesday morning to sit at 14,308.19.
