Canadian Forex Review: C$ strengthens

By Commodity News Service Canada

Winnipeg, September 18 – The Canadian dollar closed stronger against its
US counterpart on Wednesday, underpinned by news that the US Federal Reserve
had decided to not slow its monetary stimulus yet, analysts said.
According to industry watchers, the Fed said it needs to see more
improvement in the US economy before lowering its US$85 billion of bond
purchases each month.
Gains seen in commodities, including copper, crude oil and gold, added
to the loonie’s bullish tone.
The Canadian currency late in the afternoon was quoted at C$0.9783
(US$1.0221). This compares with Tuesday’s late North American quote of
C$0.9713 (US$1.0295).
Canadian bonds were higher on Wednesday, rallying after the US Federal
Reserve decided not to slow its monetary stimulus, brokers said.
Canada’s two-year bond yield is at 1.228% Wednesday, from 1.261%
Tuesday, according to electronic trading platform CanDeal. The 10-year bond
yielded 2.674%, from 2.770%.