Canadian Forex Review: C$ Closes Higher

By Commodity News Service Canada

Winnipeg, November 12 – The Canadian dollar closed higher against its US counterpart on Wednesday, supported by strong job-market data and the government’s announcement it expects to return to a balanced budget next year.

Canadian Finance Minister Joe Oliver said Ottawa expects to reap a surplus of 1.9 billion Canadian dollars in the fiscal year beginning April 1, 2015.

The December crude oil contract lost US$1.04 to US$76.90 a barrel. The December gold bullion contract faded US$3.90 to US$1,159.10 an ounce.

The government’s projection of a balanced budget should be seen as supportive for bonds compared to US Treasurys, according to a report.

Canada’s two-year bond yield was 1.016% Wednesday, from 1.033% late Tuesday.

The Canadian currency closed at C$0.8839 (US$1.1.1313). This compares with Monday’s close of C$0.8792 (US$1.1374).