Canadian forex review: C$ breaks above 91 cents US

By Commodity News Service Canada

WINNIPEG, April 29 – The Canadian dollar closed sharply higher compared to the US dollar on Tuesday, lifted by technical buying, analysts said.

The Canadian dollar closed at US$0.9132 or US$1=C$1.0951 on Tuesday, which compares with Monday’s North American settlement of US$0.9070 or US$1=C$1.1025.

A return to buying riskier assets and spillover support from the positive action seen in Canadian equity markets also lifted the loonie, brokers said.

Strength in crude oil values was also bullish, though weakness in gold and copper limited the Canadian currency’s upside.

Positioning ahead of key economic data due out later this week was a feature of the activity. The US Federal Reserve makes a rate decision on Wednesday, while US and Canadian employment data for April will be released on Friday.

Canadian bonds were mixed to higher as traders were evening positions ahead of the US Federal Reserve’s interest rate announcement on Wednesday, participants said.

The two-year bond yielded 1.082% late Tuesday, from 1.077% late Monday. The 10-year bond yielded 2.439%, from 2.450%. Bond yields fall as their prices rise.