Dollar higher amid rising commodities
Oct 24, 2012 / 7:20 am
The Canadian dollar was higher Wednesday amid rising commodity prices and positive economic news from China.
The currency rose 0.35 of a cent to 101.09 cents US a day after the Bank of Canada maintained its tightening bias for future interest rate hikes and mentioned the possibility of high household debt levels playing a role in raising rates.
Traders also looked ahead to the release of the Bank of Canada's monetary policy report at mid-morning.
"(It) will fill in the blanks from yesterday's rate statement in terms of the expected quarterly growth and inflation patterns, provide detailed forecasts on the global outlook and also some explanation of what is behind their current thinking," said Mark Chandler, head of Canadian FIC strategy at RBC Dominion Securities.
Oil and metal prices were higher after sustaining sharp losses Tuesday as disappointing U.S. earnings reports reflected deteriorating economic conditions.
The December crude contract on the New York Mercantile Exchange was up 16 cents to US$86.83 a barrel after sliding almost $2 on Tuesday.
And December copper added a penny to US$3.58 a pound. Worries about deteriorating economic conditions have pushed copper down 18 cents in the previous four sessions.
December gold bullion climbed 70 cents to US$1,710.10 an ounce.
Market sentiment was helped along by positive news from China, the world's second-biggest economy.
A preliminary version of HSBC's monthly purchasing managersâ€™ index rose to a three-month high of 49.1 points. That was still below the 50-point level that indicates an expansion but nevertheless a strong improvement from September's 47.9.
The news wasn't so positive out of Europe where a key survey of business activity, the so-called purchasing managers' index published by financial data company Markit, fell in October to its lowest level in over three years. A measure of German business confidence also fell.
Also on tap is the U.S. Federal Reserve's statement on interest rates at mid-afternoon. Analysts say not much is expected from the statement since the central bank announced a third round of economic stimulus in September.
Read more Business News
|QHR Technologies Inc||0.55||-0.03|
|Anavex Life Sciences||0.54||+0.05|
|Copper Mountain Mining||1.52||-0.16|
The majority of Canadians prefer to make their big move during the summer season. There are a variety of reasons for choosing this time of year: it is easier to transport boxes in non-icy condition...
It appears as though more people these days are looking for an investment in real estate which offers cash flow returns. The fundamentals of cash flow type properties had been turned upsi...
Getintheloop Marketing Ltd. recently launched their membership platform, Getintheloop.ca. The new website offers an exclusive members area for access to discounts in the South Okanagan on premium res...
- Sharktopus views turns on YouTube TV
- Social media makes Disney blink
- BCE looks to cut $170 million
- TD Bank: Loonie could fall to 90 cents US
- Mixed results for North American markets
- Ex-Enron CEO cuts new deal
- Canadian dollar nudges upward
- Microsoft extends agreement with Yahoo
- Iamgold profits drop 91 per cent in Q1
- Rogers puts pressure on Bell Astral deal
- Beer company roots for Canadian teams
- New milestone for Dow Jones