Compiled by Glen Hallick, MarketsFarm
WINNIPEG, Jan. 16 (MarketsFarm) – The Canadian dollar was a pinch higher on Monday despite pressure from a stronger United States dollar, declines in crude oil prices, and with expectations of a recession adding more weight.
The Bank of Canada (BoC) released its quarterly survey on consumer expectations, which found that approximately 67 per cent of businesses and 72 per cent of consumers polled believe the country’s economy will fall into a recession during 2023. As well, strong majorities of both believed that inflation would remain high but fall to two per cent within five years.
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The loonie closed at US$0.7464 or US$1=C$1.3397, compared to Friday’s close of US$0.7459 or US$1=C$1.3406. On the U.S. Dollar Index, the greenback tacked on 0.189 of a point at 102.135.
Benchmark crude oil prices were lower on Monday as the market assessed what may come of China’s loosening of its COVID-19 restrictions and how it could affect a sluggish global economy.
Brent crude oil gave up US$1.11 at US$84.17 per barrel. West Texas Intermediate (WTI) crude oil stepped back US$1.01 at US$78.85/barrel. Meanwhile, Western Canadian Select (WCS) advanced US$3.54 at US$56.87/barrel.
The TSX Composite Index finished Monday with a modest increase of 30.23 points at 20,390.33. The U.S. markets were closed for the Martin Luther King holiday.
Gold was down US$3.40 at US$1,918.30 per ounce.
Canada’s agricultural sector fared as follows:
Buhler Industries up $ 0.41 at $ 2.37 Farmers Edge Inc. up $ 0.015 at $ 0.27 Linamar Corp. dn $ 0.35 at $ 65.39 Maple Leaf Foods dn $ 0.04 at $ 26.18 Nutrien Ltd. unchanged at $100.66 Ritchie Bros Auctioneers Inc. dn $ 0.12 at $ 79.48
(All figures are in Canadian dollars.)
