By Commodity News Service Canada
WINNIPEG, December 31 The Canadian dollar was trading at a slightly firmer level versus its US counterpart at 9:05 CST Monday, as traders were optimistic that the US will not fall into another recession, participants noted.
US lawmakers have until midnight to come up with a plan to avoid the impending US ‘fiscal cliff’. Traders believe that even if there is no deal reached before the deadline, lawmakers will come up with a plan in early January, to ensure the country doesn’t fall back into recession mode.
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At 9:02 CST Monday, the Canadian dollar was at US$1.0048 or US$=C$0.9952, which compares with Friday’s North American close of US$1.0035 or US$=C$0.9965.
Strong gold and copper prices helped to lift the value of the Canadian currency. But, slightly softer crude oil prices limited the Canadian unit’s upside potential.
There was no significant Canadian economic data to report on Monday. The next economic indicators will be released by Statistics Canada in the New Year.
The TSX was down 0.36 points, or 0.00%, at 9:02 CST Monday morning to sit at 12,315.76.
