Canadian forex review: C$ eases

By Commodity News Service Canada

WINNIPEG, September 12 – The Canadian dollar eased against its US counterpart on Thursday, as traders took profits following recent strength in the currency, analysts said.

The Canadian currency was quoted at US$0.9685, or US$1=C$1.0325 at the close on Thursday, which compares with Wednesday’s North American close of US$0.9695, or US$=C$1.0315.

Positive US employment data was also bearish, as it reinforced ideas that the US Federal Reserve will start to ease out of stimulus programs soon.

Some of the weakness in the value of the Canadian dollar was also linked to spillover pressure from the sharp declines seen in gold prices.

However, strong crude oil values and positive Canadian housing data helped to limit the downside. Canadian new house prices were up 0.2% in July, beating economists’ expectations of a 0.1% increase, Statistics Canada reported.

Canadian bonds were mixed, as traders were cautiously squaring positions ahead of next week’s US Federal Reserve meeting, participants said.

The two-year bond yielded 1.286% late Thursday, from 1.293% late Wednesday. The 10-year bond yielded 2.783%, from 2.784%. Bond yields fall as their prices rise.