By Commodity News Service Canada
WINNIPEG, Jan. 20 – The Canadian dollar was sharply weaker at midday Tuesday, losing a full cent compared to its US counterpart as losses in crude oil and a softer-than-expected manufacturing data weighed on the currency ahead of Wednesday’s Bank of Canada meeting.
At 11:58 CST, the Canadian dollar was trading at US$0.8270 or US$1=C$1.2092 which compares with Monday’s close of US$0.8370 or US$=C$1.1947.
Canadian manufacturing sales declined by 1.4% in November to C$51.5 billion, reported Statistics Canada. Market participants had been anticipating a much smaller reduction.
Positioning ahead of the Bank of Canada’s interest rate announcement on Wednesday was also a feature. The Bank is generally expected to keep its key rate unchanged at 1.0%, but the accompanying statement will be followed closely for signs on future moves. Recent soft economic data has some analysts of the opinion that rate cuts are possible in the near future.
At midday Tuesday the Toronto Stock Exchange was slightly weaker, down 5.50 points at 11:58 CDT to sit at 14,307.00.
