Canadian forex review: C$ strengthens

By Commodity News Service Canada

WINNIPEG, Feb. 7 – The Canadian dollar closed stronger against its US counterpart on Friday, aided by better than expected Canadian employment data, analysts said.

Statistics Canada reported that employment rose by 29,000 jobs in January, beating expectations that 20,000 new jobs would be added to the economy. Unemployment also unexpectedly dropped from 7.2% to 7.0%.

The Canadian dollar closed at US$0.9059 or US$1=C$1.1039 on Friday, which compares with Thursday’s North American settlement of US$0.9033 or US$=C$1.1070.

Further support came from disappointing US employment data, which showed 113,000 new jobs were added in January. Expectations called for 189,000 new jobs.

Spillover support also came from the gains seen in crude oil, gold and copper prices, brokers added.

Canadian bonds were higher after a day of choppy activity on Friday, finding support from disappointing US employment data, traders said.

The two-year bond yielded 0.980% late Friday, from 0.983% late Thursday. The 10-year bond yielded 2.394%, from 2.438%. Bond yields fall as their prices rise.