By MarketsFarm
WINNIPEG, July 10 (MarketsFarm) The Canadian dollar was higher on Wednesday morning, following a generally positive global trend set by strong stock indexes.
At 8:30 CDT, the Canadian dollar was at US$0.7641 or C$1.3087, which compares with Tuesday’s North American close of US$0.7618 or C$1.3127.
Stock markets reacted positively after United States Federal Reserve Chair Jerome Powell’s testimony to Congress on Wednesday “signaled an openness to rate cuts amid ongoing uncertainty in the economy,” according to Bloomberg. The central bank’s next policy-setting meeting is on July 31.
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The U.S. dollar weakened on Wednesday following Powell’s anticipated “downbeat tone” in his congressional testimony. Powell said “trade uncertainties and concerns about the global outlook continued to exert pressure on the U.S. economy,” according to Reuters. The weakened greenback further boosted the Canadian dollar.
Oil prices were stronger on Wednesday. Iraq’s oil minister said OPEC’s decision to cut production until March 2020 will stabilize prices and lower inventories. Brent Crude oil futures hovered around US$65 on Tuesday morning, up US$1.68 cents. West Texas Intermediate prices were in the US$59 range, up US$1.70 cents.
The TSX gained at 8:30 CDT, up 76.65 points at 16,623.01. The S&P 500 Index was up 14.79 points to hit 2,994.59. Similarly, the Dow Jones gained 132.43 points at 26,915.92. The NASDAQ also increased, up 68.25 to hit 8,210.17.
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