Canadian forex review: C$ sharply higher

By Commodity News Service Canada

WINNIPEG, August 8 – The Canadian dollar moved sharply higher against its US counterpart on Thursday, as traders were more willing to take on risk amid positive Chinese and German economic data, analysts said.

The Canadian currency was quoted at US$0.9686, or US$1=C$1.0324 at the close on Thursday, which compares with Wednesday’s North American close of US$0.9594, or US$=C$1.0423.

Spill over support from the strong advances seen in gold values and firmness in copper prices provided further support, as did positioning ahead of Friday’s Canadian labour force data.

Some of the strength in the Canadian dollar was also linked to traders taking profits on the US dollar following yesterday’s sharp gains.

Canadian bonds moved higher amid the evening of positions ahead of Statistics Canada’s release of Canadian labour force data on Friday.

The two-year bond yielded 1.140% late Thursday, from 1.146% late Wednesday. The 10-year bond yielded 2.489%, from 2.503%. Bond yields fall as their prices rise.