Canadian forex review: C$ gains more than half a cent

By Commodity News Service Canada

WINNIPEG, Oct. 31 – The Canadian dollar moved higher against the US dollar on Thursday, gaining more than half a cent from Wednesday’s close.

Much of the Canadian dollar’s strength was linked to better than expected Canadian gross domestic product (GDP) data. Statistics Canada reported that GDP increased by 0.3% in August, which was above expectations of a 0.1% jump.

The Canadian currency was quoted at US$0.9590 or US$1=C$1.0427 at the close on Thursday, which compares with Wednesday’s North American settlement of US$0.9538 or US$=C$1.0484.

Positive Canadian employment data also underpinned the loonie. StatsCan reported that average weekly earnings of non-farm payroll employees increased by 0.4% to C$918 in August.

However, the advances were limited by good US employment data and spillover pressure from the sharp losses seen in gold and crude oil prices.

Canadian bonds were slightly higher, as traders were busy evening positions ahead of the end of the month, participants said.

The two-year bond yielded 1.102% late Thursday, from 1.101% late Wednesday. The 10-year bond yielded 2.417%, from 2.422%. Bond yields fall as their prices rise.