Canadian forex review: C$ strengthens

By Commodity News Service Canada

WINNIPEG, September 11 – The Canadian dollar gained more than a quarter cent against its US counterpart on Wednesday, as risk sentiment improved after the US delayed the vote on whether or not to take military action against Syria.

The Canadian currency was quoted at US$0.9695, or US$1=C$1.0315 at the close on Wednesday, which compares with Tuesday’s North American close of US$0.9664, or US$=C$1.0348.

Strength in commodities, including gold, crude oil and copper prices also helped to underpin the value of the Canadian dollar, as did technical based buying.

There was no significant Canadian or US economic data moving the loonie on Wednesday. Traders were looking ahead to Thursday’s Canadian housing market reports.

Canadian bonds moved higher, following the advances seen in the US Treasury market, brokers said.

The two-year bond yielded 1.291% late Wednesday, from 1.311% late Tuesday. The 10-year bond yielded 2.783%, from 2.818%. Bond yields fall as their prices rise.