Canadian Dollar and Business Outlook: Loonie holds firm prior to Fed announcement

By MarketsFarm

WINNIPEG, Dec. 11 (MarketsFarm) – The Canadian dollar was steady Wednesday morning, as it continues to budge very little either way ahead of today’s interest rate announcement by the United States Federal Reserve.

As of 8:50 CST, the Canadian dollar was at US$0.7561 or C$1.3226. That compares to Tuesday’s North American close of US$0.7557 or C$1.3233.

The Fed makes its announcement at 1 pm CST and it’s widely expected rates will stay between 1.50 and 1.75 per cent.

Crude oil prices were slightly lower Wednesday morning, moving back from three-month highs. The American Petroleum Institute reported that U.S. stockpiles increased by 1.41 million barrels, which weighed on values. Prices received support from an OPEC report that stated there will be a small deficit in the oil market in 2020 due to production cuts this year.

Brent crude oil was down 32 cents at US$64.02 per barrel and West Texas Intermediate slipped 17 cents at US$59.07 per barrel. Western Canadian Select was down 26 cents at US$38.91 per barrel.

The TSX/S&P Composite Index was up 24.63 at 16,928.13 points, continuing to see small movements prior to the Fed’s announcement.

Gold was up US$3.60 at US$1,471.70 per ounce.

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