Canadian forex review: C$ closes lower

By Commodity News Service Canada

WINNIPEG, Oct. 30 – The Canadian dollar moved lower against its US counterpart again on Wednesday, with total losses now at 1.75 cents since the Bank of Canada unexpectedly said they wouldn’t raise interest rates in the country for longer than anticipated on October 23.

The Canadian currency was quoted at US$0.9538 or US$1=C$1.0484 at the close on Wednesday, which compares with Tuesday’s North American close of US$0.9551 or US$=C$1.0470.

Traders were said to be liquidating positions in the Canadian currency, as there was nothing unexpected in the US Federal Reserve announcement Wednesday, according to analysts. The government agency noted they will continue to keep stimulus measures in place for the time being.

Spillover pressure from the losses seen in crude oil and gold prices, two of Canada’s biggest exports, was also bearish for the Canadian currency.

Canadian bonds were lower, following the losses in other fixed-income markets which were undermined by the US Federal Reserve decision to maintain stimulus programs for the time being, industry officials said.

The two-year bond yielded 1.102% late Wednesday, from 1.091% late Tuesday. The 10-year bond yielded 2.416%, from 2.408%. Bond yields fall as their prices rise.