By Commodity News Service Canada
Winnipeg, January 2 – The Canadian dollar was trading at a sharply higher level versus its US counterpart at midday Wednesday, as the US made a deal to avoid the fiscal cliff.
Traders were more willing to take on riskier assets, including the Canadian dollar, as news broke that the US came up with a plan to avoid the fiscal cliff and another recession.
At 11:48 CST Wednesday, the Canadian dollar was trading at US$1.0135, or US$1=C$0.9867, which compares with Monday’s North American close of US$1.0051, or US$=C$0.9949. Markets were closed on Tuesday for New Years Day.
Strong commodity prices and a rally seen in gold values also helped to boost the Canadian dollar’s value at midday Wednesday.
There was no Canadian economic data moving the loonie on Wednesday. Statistics Canada’s first releases of 2013 will come out on Friday, January 4.
The Toronto Stock Exchange was up 92.29 points, or 0.74%, at 11:48 CST Wednesday, to sit at 12,525.82.
