By Commodity News Service Canada
WINNIPEG, December 11 – The Canadian dollar was trading at a slightly firmer level versus its US counterpart at 8:50 CST
Tuesday, as expectations that the US Federal Reserve will implement more stimulus measures following their meeting on Wednesday, boosted its value, analysts said.
At 8:50 CST Tuesday, the Canadian dollar was at US$1.0135 or US$=C$0.9867, which compares with Monday’s North American close of US$1.0132 or US$=C$0.9870.
Positive economic news from Germany, as data showed the country will be able to avoid falling into another recession, also underpinned the value of the Canadian dollar.
However, soft commodity prices helped to limit the Canadian currency’s upside potential, market watchers noted.
Canadian merchandise imports were down 1.2% in October, while exports rose 1.0%, Statistics Canada reported. As a result, Canada’s trade deficit with the world narrowed from C$1.0 billion in September to C$169 million in October, StatsCan said.
The TSX was up 15.54 points, or 0.13%, at 8:50 CST Tuesday morning to sit at 12,246.01.
