By Commodity News Service Canada
WINNIPEG, July 16 – The Canadian dollar was slightly stronger at midday Tuesday, recovering from earlier weakness as participants awaited Wednesday’s Bank of Canada interest rate announcement.
At 11:43 CDT, the Canadian dollar was trading at US$0.9633 or US$1=C$1.0381 which compares with Monday’s close of US$0.9602 or US$=C$1.0415.
The Bank of Canada will release its first interest rate decision under new head Stephen Poloz on Wednesday. The Bank will also update its monetary policy report. Economists generally expect the key overnight interest rate to be left unchanged at 1.0%, but will be watching the accompanying statements for signs of future moves.
Canadian manufacturing sales increased by 0.7% in May from the previous month, reported Statistics Canada. However, at C$48.6 billion, the sales were still down 3.2% from the same point the previous year.
At midday Tuesday the Toronto Stock Exchange was weaker, down 31.75 points at 11:43 CDT to sit at 12,134.91.
