Canadian forex review: C$ up slightly

By Commodity News Service Canada

WINNIPEG, Dec. 11 – The Canadian dollar was up slightly against the US dollar on Wednesday as it continued to recover following a recent sharp drop, analysts said. Technical based buying was said to be supportive.

However, the loonie’s upside was capped by spillover pressure from the declines seen in commodities, including crude oil and gold.

The Canadian currency was quoted at US$0.9440 or US$1=C$1.0593 at the close on Wednesday, which compares with Tuesday’s North American settlement of US$0.9431 or US$=C$1.0603.

Canadian bonds moved to the downside on Wednesday, following the same movement seen in the US Treasury market, brokers said. The US Treasury market was lower due to the US government tentatively reaching a budget deal.

The two-year bond yielded 1.096% late Wednesday, from 1.078% late Tuesday. The 10-year bond yielded 2.643%, from 2.608%. Bond yields fall as their prices rise.