Tuesday, January 27th-0.5°C
24624
23613

Canadian dollar rises, traders look to major Fed meeting for rate hike hints

TORONTO - The Canadian dollar closed slightly higher Monday as geopolitical tensions eased and markets looked to the U.S. Federal Reserve and other economic data for hints as to the pace of interest rate hikes.

The loonie added 0.02 of a cent to 91.86 cents US.

Traders hoped for for hints about when the central bank might move next year to hike short-term interest rates from near zero. The Fed releases the minutes from its latest meeting on Wednesday. There could be a more hawkish tone in those minutes given the recent de-emphasis on disinflation in the news release from that meeting.

But traders in particular looked to Friday when Fed chair Janet Yellen delivers the keynote speech at the central bank's annual meeting in Jackson Hole, Wyo.

"Historically, Jackson Hole has proven market moving, making it traders' core focus this week," said Camilla Sutton, chief FX strategist, managing director, Scotiabank global banking and markets.

Inflation will play a big part in when rates will start to head higher, so traders will also consider the latest reading on the U.S. consumer price index on Tuesday. Economists looked for inflation in July to come in at an annualized rate of two per cent.

In Canada, June retail sales figures and July consumer prices index data come out Friday.

Economists expect retail sales to rise 0.4 per cent over the previous month. The CPI is forecast to have dipped 0.1 per cent from the previous month, which would leave the annual inflation rate at 1.8 per cent.

Markets had ended last week in a nervous mood after Ukraine's president said that his country's forces had destroyed a Russian armoured force that had crossed the border. But there was no escalation during the weekend and traders perceived an easing in tensions in the conflict after foreign ministers from both countries held discussions over the weekend in Berlin.

Russia’s Sergey Lavrov said Monday that all questions regarding a humanitarian mission from his country had been answered and that an agreement had been reached with Ukraine and the International Red Cross. There have been worries that the convoy of about 300 vehicles could be used to spirit in weapons for the separatists, who are gradually losing ground to Ukrainian forces.

Prices were mainly lower on commodity markets where September crude dropped 94 cents to US$96.41 a barrel, September copper was up a penny at $3.11 a pound while lessening geopolitical tensions pushed December bullion down $6.90 to US$1,299.30 an ounce.

The Canadian Press


Read more Business News

24153


Recent Trending




Today's Market
S&P TSX14797.83+18.48
S&P CDNX674.39-3.79
DJIA17678.70+6.10
Nasdaq4771.764+13.885
S&P 5002057.09+5.27
CDN Dollar0.8014-0.0002
Gold1277.20-2.2001
Oil46.87-0.06
Lumber316.00-0.30
Natural Gas2.959+0.078

 
Okanagan Companies
Pacific Safety0.14+0.025
Knighthawk0.010.00
QHR Technologies Inc1.39+0.01
Cantex0.035+0.005
Anavex Life Sciences0.18-0.001
Metalex Ventures0.035-0.005
Russel Metals24.45-0.03
Copper Mountain Mining1.09-0.01
Colorado Resources0.135-0.02
ReliaBrand Inc0.006+0.001
Sunrise Resources Ltd0.055+0.03
Mission Ready Services0.24+0.02

 



24813

FEATURED Property
2053148165 Okanagan Ave. east
$1,500,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


How to price: workbook approach

In 2008 Self Counsel Press published my book - Pricing Strategies for Small Business. The book is now available in Europe, India, Russia and the United States. The purpose of the book was to make avai...


Ailing Parents: Tax Issues

If your parent has become ill, there can be several tax issues that come into play depending on the nature of their illness, their age and the role that family members are playing. For example, if you...


What do I pay ICBC for anyway?

If you have had ongoing dealings with ICBC as a result of a car accident than you have likely had the pleasure of dealing with at least two sides of ICBC. Initially the relationship starts off pleasan...

_








Member of BC Press Council


24222