Canadian forex review: C$ strengthens

By Commodity News Service Canada

WINNIPEG, September 9 – The Canadian dollar strengthened against its US counterpart on Monday, underpinned by recent strong Canadian economic data.

According to Statistics Canada, contractors took out building permits worth C$8.0 billion in July, up 20.7% from June. Statistics Canada also reported strong employment data on Friday, which showed employment increased by 59,000 jobs in August.

The loonie’s upside was limited, however, by spillover pressure from the losses seen in commodity prices, including crude oil and gold.

The Canadian currency was quoted at US$0.9643, or US$1=C$1.0370 at the close on Monday, which compares with Friday’s North American close of US$0.9607, or US$=C$1.0409.

Canadian bonds moved higher on Monday, finding continued support from Friday’s disappointing US employment data, analysts said.

The two-year bond yielded 1.282% late Monday, from 1.291% late Friday. The 10-year bond yielded 2.745%, from 2.768%. Bond yields fall as their prices rise.