Canadian forex review: C$ closes higher

By Commodity News Service Canada

WINNIPEG, Dec. 13 – The Canadian dollar closed higher against the US dollar on Friday, lifted by positioning ahead of next week’s US Federal Reserve meeting, which may determine when they plan to ease out of stimulus programs, brokers said.

The Canadian currency was quoted at US$0.9438 or US$1=C$1.0595 at the close on Friday, which compares with Thursday’s North American settlement of US$0.9398 or US$=C$1.0640.

The Canadian dollar was also supported by short covering ahead of the weekend and spillover from the gains seen in gold and copper prices.

However, spillover pressure from the declines seen in crude oil prices, which is Canada’s largest export, limited the upside.

Canadian bonds were little changed as traders moved to the sidelines ahead of the weekend and next week’s US Federal Reserve policy meeting, analysts said.

The two-year bond yielded 1.105% late Friday, from 1.102% late Thursday. The 10-year bond yielded 2.663%, from 2.664%. Bond yields fall as their prices rise.