Canadian Dollar and Business Outlook: Loonie remains firm

Economy grew 4.5 per cent in May

By MarketsFarm

WINNIPEG, July 31 (MarketsFarm) – The Canadian dollar was steady Friday morning, despite gains in crude oil and a positive economic report from Statistics Canada.

As of 8:37 CDT, the Canadian dollar was at US$0.7447 or C$1.3428, compared to Thursday’s close of US$0.7445 or C$1.3432.

Statistics Canada said the country’s economy grew by 4.5 per cent in May, which included a 16.4 per cent jump in the retail trade. Overall, the economy still contracted by 12 per cent during the second quarter of 2020.

Benchmark crude oil prices were higher on Friday morning, as the United States dollar continues to weaken. The gains come just as production cuts by the OPEC+ alliance are set to end. This comes at the same time the COVID-19 pandemic continues to surge in several countries.

Brent crude oil gained 35 cents at US$43.29 per barrel. West Texas Intermediate (WTI) rose 49 cents at US$40.41 per barrel. Western Canadian Select (WCS) was up 12 cents at US$30.29 per barrel.

At the opening, the TSX/S&P Composite Index was down 48.99 points at 16,250.30.

Gold was up US$4.67 this morning at US$1,961.31 per ounce.

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