By Commodity News Service Canada
Winnipeg, June 9 – The Canadian dollar was up sharply against the US dollar at midday Tuesday, finding support from a strengthening crude oil market.
Oil values moved higher in reaction to signs of improving demand and talk that shale production in the US may be falling, analysts said.
At 11:40 CDT Tuesday, the Canadian dollar was trading at US$0.8116 or US$1=C$1.2321, which compares with Monday’s North American close of US$0.8066 or US$1=C$1.2398.
Technical based buying and recent positive Canadian jobs data were also providing some support for the Canadian currency.
Though, ongoing expectations that the US Federal Reserve will raise interest rates later this year continued to overhang the market.
There was no significant Canadian economic data released on Tuesday. New housing and international investment data will likely provide some direction for the currency on Thursday, brokers added.
The Toronto Stock Exchange was up 61.68 points, or 0.42%, at 11:40 CDT Tuesday, to sit at 14,805.01.
