Canadian forex review: c$ falls below 95 cents us

By Commodity News Service Canada

WINNIPEG, August 29 – The Canadian dollar moved sharply lower on Thursday, falling below 95 cents US as conflicts in Syria continued to have traders avoiding riskier assets.

Some of the weakness in the value of the Canadian dollar was linked to expectations that Friday’s Canadian gross domestic product data will show that the economy shrank the most since 2009, analysts said.

The Canadian currency was quoted at US$0.9497, or US$1=C$1.0530 at the close on Thursday, which compares with Wednesday’s North American close of US$0.9537, or US$=C$1.0495.

Better than expected US gross domestic product data was also bearish, as it helped fuel speculation that the US Federal Reserve will ease out of stimulus programs soon.

Weakness seen in commodity prices, including crude oil, gold and copper, also spilled over to weigh on the Canadian currency.

Canadian bonds moved higher Thursday, with a strong auction of US Treasurys helping to lift bond markets in both the US and Canada, market watchers said.

The two-year bond yielded 1.194% late Thursday, from 1.200% late Wednesday. The 10-year bond yielded 2.600%, from 2.628% Bond yields fall as their prices rise.