Canadian forex review: C$ firms

By Commodity News Service Canada

WINNIPEG, Feb. 6 – The Canadian dollar firmed against the US dollar on Thursday amid positioning ahead of Friday’s employment data from the US and Canada, analysts said.

The Canadian dollar closed at US$0.9033 or US$1=C$1.1070 on Thursday, which compares with Wednesday’s North American settlement of US$0.9025 or US$=C$1.1080.

Some support for the loonie came from a report showing the Ivey Purchasers Managers Index came in at 56.8 in January, beating expectations of 52.9.

Firmness seen in commodity prices, including crude oil, gold and copper, also underpinned the Canadian dollar.

However, disappointing Canadian trade data limited the upside. Statistics Canada reported that Canada’s trade deficit with the world widened to C$1.7 billion in December, from C$1.5 billion in November. Expectations called for the deficit to shrink to C$650 million.

Canadian bonds were weaker for the third straight day amid the evening of positions ahead of Friday’s Canadian and US employment data, traders said.

The two-year bond yielded 0.982% late Thursday, from 0.980% late Wednesday. The 10-year bond yielded 2.433%, from 2.386%. Bond yields fall as their prices rise.