By Malcolm Morrison, The Canadian PressTORONTO - The Canadian dollar was slightly lower Tuesday as traders look to moves by Greece to secure the next tranche of money needed to stave off default and the start of a two-day meeting by the U.S. Federal Reserves. The loonie was down 0.13 of a cent to 100.91 cents as markets also looked ahead to a key speech later in the morning by Bank of Canada governor Mark Carney. Analysts say Carney’s speech has taken on greater importance because of its fortuitous timing. With global finance ministers and central bankers meeting in Washington within days on the risks associated with Greek and other sovereign debt, as well as the economic slowdown, markets will be looking to Carney for a preview about what policy-makers are planning. Meanwhile, Greek Finance Minister Evangelos Venizelos is to hold a teleconference Tuesday evening with officials from the European Commission, International Monetary Fund and European Central Bank. He will try to convince the so-called troika that the country will meet strict budget targets promised in return for the rescue funds. Though investors think Greece will avoid a default, the consensus is that the country will have to restructure its debts in some form next year given that it’s likely to remain stuck in recession. Analysts also say there is increasing speculation that Greece will hold a referendum on their membership in the European Monetary Union. Meanwhile, some economists expect the Fed to eventually try for the third time to stimulate growth through a program to buy Treasurys to lower long-term interest rates at the end of its meeting Wednesday afternoon. That’s a step known as "quantitative easing." Last month, the Fed promised to keep its key interest rate near zero through mid-2013. In economic news, Statistics Canada announced that wholesale sales advanced 0.8 per cent in July to $48.2 billion after remaining unchanged in June. Traders also took in news that Standard & Poor’s cut Italy’s credit rating late Monday by one notch to A from A-plus in light of what it sees as the country’s weakening economic growth prospects and higher-than-expected levels of government debt. Commodity prices were mainly higher following steep drops Monday as investors worried a Greek default would worsen global economic conditions and discourage demand. The October crude contract on the New York Mercantile Exchange gained 52 cents to US$86.22. December copper on the Nymex was unchanged at US$3.78 while the December gold contract in New York was up $12 to US$1,790.90 an ounce.

Source