Canadian forex review: C$ unchanged

By Commodity News Service Canada

WINNIPEG, September 26 – The Canadian dollar closed unchanged against its US counterpart on Thursday.

Traders were wary of pushing the Canadian currency too far one way or the other due to worries about the debate surrounding the US budget and fiscal situation.

The Canadian currency was quoted at US$0.9696 or US$1=C$1.0313 at the close on Thursday, which compares with Wednesday’s North American close of US$0.9696 or US$=C$1.0313.

Strong crude oil and copper prices provided some support for the loonie, while spillover pressure from sharp losses seen in gold was bearish.

Canadian bonds were mostly weaker, following the US Treasury market, which was pressured by the release of positive US economic data.

US jobless claims decreased by 5,000 to a seasonally adjusted 305,000 during the week ended September 21, beating expectations that claims would increase to 325,000.

The two-year bond yielded 1.221% late Thursday, from 1.199% late Wednesday. The 10-year bond yielded 2.587%, from 2.572%. Bond yields fall as their prices rise.