Canadian forex review: C$ little changed

By Commodity News Service Canada

WINNIPEG, Oct. 10 – The Canadian dollar was little changed against its US counterpart on Thursday, as traders continued to be cautious amid the US government shutdown, now into its second week.

The Canadian currency was quoted at US$0.9619 or US$1=C$1.0396 at the close on Thursday, which compares with Wednesday’s North American close of US$0.9621 or US$=C$1.0394.

Traders also moved the sidelines ahead of Friday’s Canadian employment data from Statistics Canada, analysts said.

Strength seen in crude oil prices was supportive, while spillover pressure from losses seen in gold was bearish.

Statistics Canada reported that the Canadian New Housing Price Index rose 0.1% in August, which compares to a 0.2% rise in August and expectations of a 0.2% increase.

Canadian bonds were sharply lower on Thursday, following along with the declines seen in the US Treasury market, participants said.

The two-year bond yielded 1.211% late Thursday, from 1.198% late Wednesday. The 10-year bond yielded 2.597%, from 2.579%. Bond yields fall as their prices rise.