Canadian forex review: C$ closes fractionally weaker

By Commodity News Service Canada

WINNIPEG, Feb. 27 – The Canadian dollar closed fractionally weaker against the US dollar on Thursday. Better than expected Canadian trade data helped to offset the liquidation of riskier assets due to concerns about political problems in Ukraine, analysts said.

Statistics Canada reported that the country’s trade deficit grew to C$16.01 billion in the fourth quarter of 2013, from C$14.80 billion. Expectations called for a C$17 billion deficit.

The Canadian dollar closed at US$0.8980 or US$1=C$1.1136 on Thursday, which compares with Wednesday’s North American settlement of US$0.8986 or US$=C$1.1128.

Weakness in crude oil values was bearish for the Canadian currency, while a firmer tone in gold was supportive.

Traders were looking ahead to Statistics Canada’s release of Canadian GDP figures on Friday.

Canadian bonds were higher on Thursday, as investors were buying safe-haven assets due to concerns about the political unrest in Ukraine, brokers said.

The two-year bond yielded 0.990% late Thursday, from 1.005% late Wednesday. The 10-year bond yielded 2.409%, from 2.433%. Bond yields fall as their prices rise.