Canadian forex review: C$ firms

By Commodity News Service Canada

WINNIPEG, Feb. 11 – The Canadian dollar firmed against its US counterpart on Tuesday, supported by weakness in the US dollar, analysts said.

The Canadian dollar closed at US$0.9077 or US$1=C$1.1017 on Tuesday, which compares with Monday’s North American settlement of US$0.9046 or US$=C$1.1055.

Sharply higher gold prices spilled over to support the Canadian dollar, though slightly weaker crude oil values were bearish.

The US Federal Reserve’s announcement that they are focused on easing stimulus measures further going forward also weighed on the loonie.

Canada’s federal government released their 2014/15 budget without any surprises, therefore the announcement had little impact on the Canadian currency, traders added.

Canadian bonds were lower, following the US Treasury market’s downward move after the US Federal Reserve announcement, brokers said.

The two-year bond yielded 1.012% late Tuesday, from 0.983% late Monday. The 10-year bond yielded 2.453%, from 2.406%. Bond yields fall as their prices rise.