Wednesday, July 23rd25.6°C
21452
21739

Canadian dollar dips amid optimistic, yet cautious, BoC business outlook

TORONTO - The Canadian dollar fell Monday as traders digested results from the Bank of Canada's latest survey on businesses optimism.

The loonie dipped 0.18 of a cent to 93.66 cents US.

According to the central bank's summer outlook, executives gave generally positive responses across a number of questions but, in most cases, confidence levels dropped from the spring survey. Most also remained cautious on investment and hiring.

The bank's analysis was that businesses have not materially changed expectations from the spring.

The survey is one of the ways the central bank gauges how the economy is faring. It relies on a summary of interviews conducted with senior management at about 100 Canadian firms on topics such as demand and capacity, and how they view future economic activity.

April's survey showed that there were some signs of improvement for exporters, with businesses saying that they had a positive outlook based on a strengthening U.S. economy and a depreciation of the Canadian dollar.

The Canadian dollar is entering the second half of the year around the 94-cent US level, close to its highest point for 2014 so far and much to the discomfort of the country's exporters.

Those elevated levels could be tested Friday when Statistics Canada releases June employment data. The agency is expected to report that about 24,000 jobs were created last month compared with 25,800 in May, with the jobless rate remaining unchanged at seven per cent.

Ian Nakamoto, director of research at 3MACS, said the loonie could fall if the figures do not come in as expected.

Analysts observe that the dollar's rise from 89 cents US earlier in the year is due to a number of reasons, including rising inflation, data suggesting the outlook for exporters is improving, a better American economic climate and rising oil prices.

"The net CAD (Canadian dollar) position has shifted net positive for the first time since February 2013, highlighting that finally sentiment towards CAD has turned favourable, removing a major weight against CAD," said Camilla Sutton, chief FX strategist, managing director, Scotiabank Global Banking and Markets.

"The net long position... is very small, but it is not the size but the shift to a more balanced outlook that is important."

Meanwhile, commodity prices fell, with the August crude oil 53 cents lower at US$103.53 a barrel.

August gold bullion fell $3.60 to US$1,317 an ounce while September copper lost two cents to US$3.26 a pound.

Follow @LindaNguyenTO on Twitter.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX15394.38+79.25
S&P CDNX1012.231.35
DJIA17086.63-26.91
Nasdaq4473.697+17.681
S&P 5001987.01+3.48
CDN Dollar0.9323-0.0001
Gold1313.40+4.2001
Oil104.30-0.29
Lumber332.40-0.90
Natural Gas3.765-0.007

 
Okanagan Companies
Pacific Safety0.200.00
Knighthawk0.01-0.005
QHR Technologies Inc1.15-0.04
Cantex0.08+0.02
Anavex Life Sciences0.325-0.005
Metalex Ventures0.07+0.005
Russel Metals35.65+0.05
Copper Mountain Mining2.76-0.07
Colorado Resources0.2150.00
ReliaBrand Inc0.10+0.019
Sunrise Resources Ltd0.025-0.005
Mission Ready Services0.19+0.01

 



22557

FEATURED Property
19704293626 Mission Springs Drive # 19
3 bedrooms 3 baths
$369,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Labour shortage in BC

The mainstream media are finally waking up to something unusual in British Columbia – a labour shortage. If the experience of Alberta is a guide to our own future, the highly skilled labour will...


Learn to delegate effectively

Photo: ContributedI have the pleasure of witnessing people delegate tasks quite often. Sometimes with tremendous success and sometimes with disastrous consequences. I have chaired a lot of committees...


Euro debt woes re-emerge

Big Picture Euro debt woes re-emerge Europe’s debt woes jumped back into the headlines this week trumping other economic, geopolitical and corporate developments. Word that one of Portugal&rsquo...

_








Member of BC Press Council


22581