Canadian forex review: C$ firms

By Commodity News Service Canada

WINNIPEG, Jan. 3 – The Canadian dollar closed higher against the US dollar on Friday, with gains seen in gold prices helping to support the currency, traders said.

Quiet holiday related trade activity and a lack of fresh news helped to exaggerate the move to the upside, analysts added.

However, losses in crude oil, one of Canada’s biggest exports, helped to limit the Canadian dollar’s upside.

The Canadian currency closed at US$0.9399 or US$1=C$1.0639 on Friday, which compares with Thursday’s North American settlement of US$0.9369 or US$=C$1.0673.

Canadian bonds ended lower, following the same action seen in the US Treasury market on Friday, according to industry officials.

The two-year bond yielded 1.139% late Friday, from 1.127% late Thursday. The 10-year bond yielded 2.758%, from 2.741%. Bond yields fall as their prices rise.