Canadian forex review: C$ firms slightly

By Commodity News Service Canada

WINNIPEG, Jan. 30 – The Canadian dollar finished slightly firmer compared to the US dollar Thursday, seeing a recovery after dipping to four-and-a-half year lows during the overnight trading session, analysts said.

The Canadian currency closed at US$0.8956 or US$1=C$1.1166 on Thursday, which compares with Wednesday’s North American settlement of US$0.8956 or US$=C$1.1178.

Positive Canadian payroll earnings data and strength in crude oil prices also helped to underpin the value of the Canadian currency.

However, weakness in gold prices and Wednesday’s US Federal Reserve decision to cut back on their bond buying program were bearish.

Canadian bonds closed lower on Thursday, following the US Treasury market amid a lack of fresh news, industry watchers said.

The two-year bond yielded 0.972% late Thursday, from 0.967% late Wednesday. The 10-year bond yielded 2.377%, from 2.368%. Bond yields fall as their prices rise.