Canadian Forex Review: C$ weakens on profit taking

By Commodity News Service Canada

Winnipeg, September 19 – The Canadian dollar closed weaker against its
US counterpart on Thursday, undermined by profit taking after the loonie
posted big gains on Wednesday, following the US Federal Reserve’s
announcement saying they would not slow monetary stimulus yet, industry
watchers said.
A Statistics Canada report halted any further losses, as wholesale sales
were up 1.5% in July to C$49.5 billion, which was much stronger than the 3.1%
decline in June.
Gains seen in commodities, including gold and copper, also limited the
losses.
The Canadian currency late in the afternoon was quoted at C$0.9743
(US$1.0263). This compares with Wednesday’s late North American quote of
C$0.9783 (US$1.0222).
Canadian bonds were mixed on Thursday, with the long end down following
a big correction in US Treasurys and shorter dated issues up, brokers said.
Canada’s two-year bond yield is at 1.247% Thursday, from 1.261%
Wednesday, according to electronic trading platform CanDeal. The 10-year bond
yielded 2.705%, from 2.690% the previous day.