Canadian forex review: C$ stronger

By Commodity News Service Canada

Winnipeg, Oct. 4 – The Canadian dollar was stronger compared to its US counterpart on Friday, lifted by spillover support from the gains seen in crude oil and copper, analysts said.

The Canadian currency was quoted at US$0.9716 or US$1=C$1.0292 at the close on Friday, which compares with Thursday’s North American close of US$0.9684 or US$=C$1.0326.

Some of the strength was also linked to reports showing that the Canadian economy is expanding. Canada’s Ivey Purchasing Managers Index was 51.9 in September, up from 51.0 in August.

However, losses seen in other commodities, including gold, helped to limit the upside in the Canadian currency.

Canadian bonds were lower on Friday amid profit taking following recent advances and ahead of the weekend, participants said.

The two-year bond yielded 1.196% late Friday, from 1.182% late Thursday. The 10-year bond yielded 2.593%, from 2.541%. Bond yields fall as their prices rise.

Trade activity in both Canadian bond and dollar markets continued to be somewhat subdued because of worries about the ongoing US government shutdown.