Canadian forex review: C$ closes little changed

By Commodity News Service Canada

WINNIPEG, Jan. 15 – The Canadian dollar was little changed on Wednesday, seeing a consolidation following recent sharp declines, analysts said.

Some support came from short covering ahead of next week’s Bank of Canada policy announcement, where interest rates are expected to remain unchanged.

Strong crude oil prices were also supportive, while losses in gold values were bearish for the Canadian dollar, participants added.

Recent disappointing Canadian economic data, paired with positive US economic data, continued to overhang the Canadian dollar.

The Canadian currency closed at US$0.9137 or US$1=C$1.0945 on Wednesday, which compares with Tuesday’s North American settlement of US$0.9134 or US$=C$1.0948.

Canadian bonds closed mixed, with the two-year bond following the US Treasury market to lower ground, market watchers said.

The two-year bond yielded 1.061% late Wednesday, from 1.056% late Tuesday. The 10-year bond yielded 2.575%, from 2.582%. Bond yields fall as their prices rise.