By Commodity News Service Canada
Winnipeg, July 15 – The Canadian dollar was lower on Tuesday, as traders await the Wednesday announcement on interest rates from the Bank of Canada.
At 9:15 CDT Tuesday morning, the Canadian dollar was down 0.15 of a cent from Monday’s close to sit at US$0.9318 or US$1 = C$1.0722.
It is universally expected that the central bank will hold its key rate at one per cent as the global economy slowly recovers from the financial collapse of 2008 and the subsequent recession, brokers say. The Bank of Canada has been holding its key rate around one per cent since September 2010.
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Traders will be particularly interested in what the Bank of Canada has to say about the economy and how economic conditions could be impacted by a stubbornly high Canadian dollar.
Over the next two days the markets will also be focusing on U.S. economist Janet Yellen as she delivers testimony to the Congressional committees on the economy and monetary policy. Analysts say her comments will be closely watched for clues as to how she will manage monetary policy in the upcoming months.
On the commodity markets, August crude oil was down 62 cents to US$100.22 a barrel. Meanwhile August gold bullion gained $3.80 to US$1,310.50 an ounce, and September copper remained unchanged at US$3.25 a pound.
The TSX was down 14.81 points to sit at 15,156.42at 9:15 CDT Tuesday morning.
