By Commodity News Service Canada
Sept. 26 (CNS Canada) — The Canadian dollar is trading near 77 US cents as worries about Canada being left out of a North American Free Trade Agreement are holding back potential for any large increases.
The United States Federal Reserve is expected to announce an interest rate hike later today, which would make it the third rate increase this year.
The Canadian dollar was at US$0.7714, or C$1.2963 per U.S. dollar at 8:35 a.m. CDT. It closed Sept. 26 at US$0.7723, or C$1.2948.
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Financial services giant JP Morgan Chase and Co. is warning that the Canadian dollar could fall by 10 per cent against the U.S. dollar if no agreement on the North American Free Trade Agreement can be struck, Bloomberg is reporting. JP Morgan said with no NAFTA agreement, Canada would face 25 per cent tariffs on autos and dairy, disrupting supply chains and cause the Bank of Canada to cut interest rates. The financial institution was outlining a worst-case scenario.
The S&P/TSX composite index was up 22.84 points, or 0.14 per cent to 16,148.09 at 8:48 a.m. CDT. Gains in tech stocks were offsetting losses in materials.
West Texas Intermediate (WTI) crude oil was at US$71.79 per barrel, up 49 US cents, early this morning.
