Canadian forex review: C$ strengthens

By Commodity News Service Canada

WINNIPEG, Feb. 12 – The Canadian dollar strengthened against the US dollar on Wednesday amid positive Chinese trade data, analysts said.

Chinese imports rose 10 per cent to US$107.2 billion in January, while exports rose 10.6 per cent to US$126.7 billion, data showed.

The Canadian dollar closed at US$0.9093 or US$1=C$1.0997 on Wednesday, which compares with Tuesday’s North American settlement of US$0.9077 or US$=C$1.1017.

Tuesday’s federal budget announcement from Canada’s finance minister, which showed an almost balanced budget in 2014/15, was also supportive.

Canadian bonds were lower as traders were liquidating safe-haven assets, market watchers said.

The two-year bond yielded 1.036% late Wednesday, from 1.014% late Tuesday. The 10-year bond yielded 2.487%, from 2.459%. Bond yields fall as their prices rise.