Canadian forex review: C$ firms with oil

By Commodity News Service Canada

WINNIPEG, May 8 – The Canadian dollar ended firmer relative to the US dollar Friday, finding some support from stronger oil prices, analysts said.

The Canadian dollar closed at US$0.8271 or US$1=C$1.2090 on Friday, which compares with Thursday’s North American settlement of US$0.8251 or US$1=C$1.2120.

Disappointing US employment data was also lifting the Canadian currency. The US Labor Department said 223,000 new jobs were created in the US last month, below expectations of 238,000 new jobs.

Though, Canadian employment figures were also lacklustre, which limited the loonie’s upside. Statistics Canada said 19,700 jobs were lost in Canada in April, well below expectations that jobs would decline by 5,000.

Canadian bonds were stronger Friday, reacting to the disappointing Canadian and US employment data, according to brokers.

The two-year bond yielded 0.662% late Friday, from 0.681% late Thursday. The 10-year bond yield was at 1.697%, from 1.750%. Bond yields fall as their prices rise.