Canadian forex review: C$ down ahead of month’s end

By Commodity News Service Canada

WINNIPEG, April 30 – The Canadian dollar ended softer on Thursday, as traders took profits on recent advances ahead of the month’s end, analysts said.

The Canadian dollar closed at US$0.8289 or US$1=C$1.2064 on Thursday, which compares with Wednesday’s North American settlement of US$0.8317 or US$1=C$1.2023.

News that jobless claims fell to a new 15-year low in the US during the week was also bearish, as was Wednesday’s US Fed announcement saying an interest rate hike is still on the horizon.

Though, strength in crude oil values helped to limit the downside, as prices were moving above the $59 per barrel mark.

Canadian gross domestic product (GDP) data released Thursday was mixed. Statistics Canada said GDP was unchanged in February, better than pre-report expectations calling for a 0.1 per cent drop. But, StatsCan also revised January’s GDP to a 0.2 per cent decline, from its initial 0.1 per cent drop estimate.

Canadian bonds ended mixed on Thursday, as traders squared positions before the end of the month in both the Canadian market and US Treasurys, brokers said.

The two-year bond yielded 0.681% Thursday, from late 0.679% Wednesday. The 10-year bond yield was at 1.589%, from 1.588%. Bond yields fall as their prices rise.