Canadian Forex Review: C$ Firms

By Commodity News Service Canada

WINNIPEG, January 4 – The Canadian dollar closed slightly higher compared to the US dollar on Friday, underpinned by strong Canadian employment data.

Statistics Canada reported Canada’s economy added 40,000 new jobs in December, beating expectations of 5,000 new jobs. The unemployment rate was down to 7.1%, the lowest in 4 years. Pre-report expectations saw the unemployment rate increasing slightly.

The Canadian currency was quoted at US$1.0131, or US$1=C$0.9871 at the close on Friday, which compares with Thursday’s North American close of US$1.0121, or US$=C$0.9880.

Strong crude oil prices also helped to underpin the Canadian dollar, while a sharp decline in gold and tempered the gains.

US employment data was a little bit disappointing, which most likely limited the advances in the Canadian currency, according to traders. The US economy added 155,000 new jobs in December, while the unemployment rate held steady at 7.8%.

Canadian bonds moved lower on Friday, as weak demand weighed on values, participants noted.

The two-year bond yielded 1.209% late Friday, from 1.187% on Thursday. The 10-year bond yielded 1.940%, from 1.926% Thursday. Bond yields rise as their prices fall.