Canadian forex review: C$ strengthens

By Commodity News Service Canada

WINNIPEG, June 25 – The Canadian dollar strengthened against the US dollar on Thursday, lifted by short covering following recent losses, analysts said.

The Canadian dollar closed at US$0.8115 or US$1=C$1.2323 on Thursday, which compares with Wednesday’s North American settlement of US$0.8065 or US$1=C$1.2400.

The Canadian dollar was also moving higher despite a sharp rise in US consumer spending last month, according to market watchers.

Weakness in crude oil values limited the upside, as it is one of Canada’s main exporting commodities.

Canadian bonds moved lower Thursday, following the US Treasury market amid strong US consumer spending figures, traders said.

The two-year bond yielded 0.618% Thursday, from 0.604% Wednesday. The 10-year bond yield was at 1.814%, from 1.777%. Bond yields rise as their prices fall.