Canadian forex review: C$ strengthens

By Commodity News Service Canada

WINNIPEG, Oct. 11 – The Canadian dollar was stronger against its US counterpart on Friday, gaining more than a third of a cent amid positive Canadian employment data.

Statistics Canada reported that 11,900 new jobs were added to the economy in September, beating expectations of 10,000 new jobs. The unemployment rate in Canada dropped by 0.2% in September to 6.9%.

The Canadian currency was quoted at US$0.9658 or US$1=C$1.0354 at the close on Friday, which compares with Thursday’s North American close of US$0.9619 or US$=C$1.0396.

The Canadian dollar was also underpinned by optimism that the US government shutdown will end soon, and that they will be able to figure out its debt problem before the October 17 deadline.

However, the upside was limited by spillover pressure from the sharp losses seen in gold and crude oil values.

Canadian bonds were slightly higher ahead of the Canadian long weekend. Canadian markets will be closed on Monday, October 14 for Thanksgiving.

The two-year bond yielded 1.210% late Friday, from 1.211% late Thursday. The 10-year bond yielded 2.593%, from 2.597%. Bond yields fall as their prices rise.