Canadian forex review: C$ eases

By Commodity News Service Canada

WINNIPEG, September 5 – The Canadian dollar eased against the US dollar on Thursday, undermined by positive US employment data which reinforced ideas that the US Federal Reserve will start tapering stimulus programs soon, analysts said.

According to the US government, the number of US jobless claims fell by 9,000 last week, to 323,000 which is near a five-year low.

The Canadian currency was quoted at US$0.9518, or US$1=C$1.0506 at the close on Thursday, which compares with Wednesday’s North American close of US$0.9531, or US$=C$1.0492.

Sharp losses seen in gold prices on Thursday further weighed on the Canadian dollar. However, the losses were limited by spillover support from the gains seen in crude oil and copper.

Traders were said to be positioning themselves ahead of key employment data that is set to be released on Friday in both Canada and the US.

Canadian bonds moved lower on Thursday, as traders were exiting positions in the fixed-income market ahead of Friday’s Canadian and US employment data.

The two-year bond yielded 1.290% late Thursday, from 1.238% late Wednesday. The 10-year bond yielded 2.801%, from 2.717% Bond yields fall as their prices rise.