Canadian Forex Review: C$ moves higher

By Commodity News Service Canada

Winnipeg, October 16 – The Canadian dollar closed higher against its US
counterpart on Wednesday, underpinned by news that senate leaders have agreed
to a deal to extend the US debt ceiling and to reopen the US government,
industry watchers said.
Gains in commodities, including gold, copper and crude oil, added to the
loonie’s bullish tone.
However, weaker-than-expected Canadian economic data halted further
advances, brokers said. According to Statistics Canada, manufacturing sales
were down 0.2% in August, which was below economists’ expectations of a 0.2%
increase.
The Canadian currency late in the afternoon was quoted at C$0.9677
(US$1.0334). This compares with Tuesday’s late North American quote of
C$0.9634 (US$1.0380).
Canada’s bonds were up on Wednesday, as investors were back on fixed-
income assets after the US Senate agreed to extend the US debt ceiling and
reopen the government, participants said.
Canada’s two-year bond yield is at 1.210% Wednesday, from 1.232%
Tuesday, according to electronic trading platform CanDeal. The 10-year bond
yielded 2.614%, from 2.648%.