Canadian forex review: C$ weaker

By Commodity News Service Canada

WINNIPEG, September 25 – The Canadian dollar was weaker against its US counterpart on Wednesday, as traders were less willing to take on risk due to nervousness surrounding the US budget debate, analysts said.

The Canadian currency was quoted at US$0.9696 or US$1=C$1.0313 at the close on Wednesday, which compares with Tuesday’s North American close of US$0.9707 or US$=C$1.0302.

Positive US economic data was also bearish. According to the US Department of Commerce, orders for durable goods were up 0.1% in August, which was better than expected.

Further weakness came from spillover pressure from the losses seen in crude oil values. However, strength in gold helped to limit the downside.

Canadian bonds were mostly higher, as traders were attracted to safe-haven assets due to concerns surrounding the US budget debate.

The two-year bond yielded 1.210% late Wednesday, from 1.210% late Tuesday. The 10-year bond yielded 2.572%, from 2.600%. Bond yields fall as their prices rise.