Canadian Forex Review: C$ strengthens

By Commodity News Service Canada

Winnipeg, September 17 – The Canadian dollar closed stronger against its
US counterpart on Tuesday, as positive Canadian economic data gave the loonie
a boost, industry watchers said.
According to Statistics Canada, manufacturing sales were up 1.7% in July
to C$49.5 billion. July’s gains were significantly higher than the 0.5%
increase economists’ forecast.
The Canadian dollar found further strength from weaker-than-expected US
economic data. According to reports, the US consumer price index was up 0.1%
in August, following a 0.2% gain in July, analysts said. ‘
However, losses seen in commodities, including crude oil and gold,
limited the loonie’s advances.
Traders were also looking ahead to Wednesday’s policy statement from the
US Federal Reserve, brokers said.
The Canadian currency late in the afternoon was quoted at C$0.9714
(US$1.05294). This compares with Monday’s late North American quote of
C$0.9685 (US$1.0325).
Canadian bonds were higher on Tuesday, as weak US economic data brought
into question at what pace the US Federal Reserve will slow its monetary
stimulus, participants said.
Canada’s two-year bond yield is at 1.261% Tuesday, down from 1.267%
Monday, according to electronic-trading platform CanDeal. The 10-year bond
yields 2.773%, down from 2.780%.