Canadian forex review: C$ firms slightly

By Commodity News Service Canada

WINNIPEG, Oct. 3 – The Canadian dollar was firmed slightly against its US counterpart on Thursday, though traders were still being cautious due to the US government shutdown, analysts said.

The Canadian currency was quoted at US$0.9684 or US$1=C$1.0326 at the close on Thursday, which compares with Wednesday’s North American close of US$0.9679 or US$=C$1.0332.

Some of the firmness in the Canadian currency was linked to positive Canadian economic data. According to the Department of Finance Canada, Canada’s international reserves increased in by US$1.464 billion to US$71.392 billion in September.

However, spillover pressure from the losses seen in commodities, including crude oil and gold, limited the loonie’s gains.

Canadian bonds were higher on Thursday, lifted by concerns about the US labour market, following the release of a lackluster report on the US service sector, brokers said.

The two-year bond yielded 1.183% late Thursday, from 1.186% late Wednesday. The 10-year bond yielded 2.543%, from 2.549%. Bond yields fall as their prices rise.