The Canadian dollar rebounded against the U.S. dollar on Tuesday as increased gold and oil prices helped to push the loonie back above parity.
Gold gained close to US$20 an ounce, setting a new record of US$879.10 at noon on Tuesday. Incredibly, only a month ago gold was trading well below the US$800 per-ounce mark.
Oil also continued to trade higher, Tuesday with Brent crude reaching close to US$94 per barrel.
The impending collapse of the U.S. housing market came one step closer with a statement from Boston Federal Reserve president Eric Rosengren. In an address to the Connecticut Business and Industry Association, Rosengren indicated that the United States could be facing its worst housing market in 50 years if economic conditions continue to slide in 2008.
Federal Reserve chairman Ben Bernanke is scheduled to speak on Thursday. Investors will be looking for Mr. Bernanke to confirm that the Fed is considering a deep cut to interest rates at the end of January.
By 1:30 p.m. Tuesday the Canadian dollar was trading higher against the U.S dollar at 0.9995.
Market report prepared by Bruce Hauser and Patrick May
Accu-Rate Corporation
2573 Carling Ave. Ottawa, ON K2B 7H7
Tel: (613) 596-5505
E-mail: bruce@accu-rate.ca or patrick@accu-rate.ca
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