By Commodity News Service Canada
Winnipeg, December 17 – The Canadian dollar was lower Wednesday morning as traders positioned themselves in anticipation of an interest rate announcement by the US Federal Reserve. That is expected to come out by mid-afternoon.
At 8:50 CST Wednesday morning, the loonie was down 0.0011 of a cent to US$0.8588 or US$1 = C$1.1644. Traders are hoping the announcement will contain language indicating short-term rates will stay ultra-low for a considerable time.
A hike in the interest rate is expected to happen sometime next year. However, recent economic data suggests a move could be coming sooner rather than later.
The consumer price index in the US was down 0.3 percent in November. That is lower than analysts’ projections.
On the commodity markets the January crude contract in New York fell $1.40 to US$54.53 a barrel. March copper fell two cents to US$2.84 a pound while the February gold contract jumped $7.00 to US$1,201.30 an ounce.
At 8:50 CST Wednesday morning, the TSX was down 2.40 points to 13,859.12.
