Canadian forex review: C$ eases

By Commodity News Service Canada

WINNIPEG, August 28 – The Canadian dollar eased against its US counterpart on Wednesday, as traders were avoiding risk assets due speculation that the US army will take action against Syria following a chemical attack in the country, analysts said.

The Canadian currency was quoted at US$0.9537, or US$1=C$1.0485 at the close on Wednesday, which compares with Tuesday’s North American close of US$0.9547, or US$=C$1.0474.

Disappointing Canadian economic data was also bearish. Statistics Canada reported that average weekly earnings of non-farm payroll employees rose only 0.2% to C$919 in June.

Weakness in gold and copper values further undermined the loonie. However, crude oil values were stronger, which limited its downside potential.

Canadian bonds moved lower on Wednesday, following the same action seen in the US Treasury market, industry officials said.

The two-year bond yielded 1.200% late Wednesday, from 1.165% late Monday. The 10-year bond yielded 2.635%, from 2.563% Bond yields fall as their prices rise.