By Commodity News Service Canada
Winnipeg, July 29 – The Canadian dollar was lower on Tuesday morning as the U.S. Federal Reserve began its two-day meeting on interest rates, analysts say.
At 8:50 CDT Tuesday morning, the loonie was at US$0.9239 or US$1 = C$1.0801, down 0.2 of a cent from Monday’s close.
Economists are expecting the Federal Reserve to keep its key interest rate near zero for the next while. Economic performance has improved to a point where it is thought the central bank could move earlier than the expected mid-2015.
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More economic news will be released this week, including the S&P/Case-Shiller Home Price Index that is also scheduled for release Tuesday morning. It is expected to show continued double-digit year-over-year price growth in major U.S. cities during the month of May. Economists are looking for a gain of 10 per cent year-over-year, however that would be down from a near 14 per cent pace last year.
On Wednesday, traders will look at the latest economic growth readings from Canada and the U.S. that will be followed by a report on Thursday on China’s manufacturing industry that will give investors an update on the state of the world’s second biggest economy.
On Friday the U.S. will release its monthly employment data, which is expected to show that the U.S. labour market added between 235,000 and 255,000 jobs during July.
The TSX was down 9.82 points to 15,445.22 at 8:50 CDT Tuesday morning.
