Canadian forex review: C$ drops sharply

By Commodity News Service Canada

WINNIPEG, Nov. 27 – The Canadian dollar closed sharply lower on Wednesday, with much of the weakness linked to the drop seen in crude oil prices, analysts said.

The Canadian currency was quoted at US$0.9438 or US$1=C$1.0595 at the close on Wednesday, which compares with Tuesday’s North American settlement of US$0.9497 or US$=C$1.0530.

Gold, copper and other commodity prices were also weaker on Wednesday, which put further downward pressure on the Canadian currency.

There was no significant Canadian economic data reported on Wednesday. Traders were looking ahead to Canadian gross domestic product data on Friday.

Canadian bonds were weaker on Wednesday, undermined by liquidation ahead of the US Thanksgiving holiday on Thursday and the end of the month, brokers said.

The two-year bond yielded 1.099% late Wednesday, from 1.098% late Tuesday. The 10-year bond yielded 2.546%, from 2.520%. Bond yields fall as their prices rise.