IN THE NEWS –
Dollar Edges Up Guardedly with Oil Price
Canada is a major exporter of resources and commodities therefore its currency is often influenced and linked to their fluctuations in prices. Oil has slumped in the past two weeks and the commodity-linked Canadian dollar weakened alongside it, according to Reuters Canada. “The currency may be vulnerable as oil prices are likely to stay volatile on concerns about economic recovery in the United States and unresolved sovereign debt issues in the euro zone.”
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Harper Signals Continuation of Economic Policies
"Although a number of changes have been necessary and desirable, the new ministry is fundamentally about stability and continuity," Harper told reporters after emerging from the swearing-in ceremony at Rideau Hall.
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Market Updates:
- TSX +166.19 to 13,607.25 (Reuters)
Chalked up a solid gain as investors bought up resource companies and other stocks that have been beaten down recently, while signs of higher demand sent oil prices surging.
- DOW +80.60 to 12,560.18
Also up sharply after the Federal Reserve released minutes that showed that officials at the central bank are not planning to tighten monetary policy soon.
- Dollar +.21c to 103.03c US
- Oil +$3.19 to $100.10USD per barrel
Amid a crude supply report that provided signals of higher demand
- Gold +$15.80 to $1495.80 per ounce Precious metals also benefited from a weaker U.S. currency
- Canadian 5 yr bond yields markets +.07bps to 2.54. The spread (based on the MERIX 5 yr rate published rate of 4.19%) is above the comfort zone at 1.65.
