Canadian forex review: C$ eases slightly, off lows of the day

By Commodity News Service Canada

WINNIPEG, Nov. 14 – The Canadian dollar closed slightly lower compared to its US counterpart on Thursday, undermined by ideas that Wednesday’s advance was overdone, analysts said. Positive US employment data was also bearish.

However, the Canadian currency was well off its lows of the day, as a dovish remark from US Federal Reserve Vice Chairwoman Janet Yellen was supportive. She said the Fed doesn’t plan to ease out of stimulus programs until at least next year.

The Canadian currency was quoted at US$0.9553 or US$1=C$1.0468 at the close on Thursday, which compares with Wednesday’s North American settlement of US$0.9558 or US$=C$1.0462.

Canadian bonds were higher, following the gains in the US Treasury market after Yellen’s dovish remarks, industry officials said.

The two-year bond yielded 1.105% late Thursday, from 1.119% late Wednesday. The 10-year bond yielded 2.564%, from 2.597%. Bond yields fall as their prices rise.