Canadian Forex/Bond Review: C$ Posts Gains

By Commodity News Service Canada

Winnipeg, September 3 – The Canadian dollar climbed higher Thursday as investors positioned themselves ahead of the release of North American labor reports.

At 4:00 CDT Thursday, the loonie was at US$0.7576 or US$1 = C$1.3199.

The loonie received support from international merchandise trade figures which came in ahead of analysts’ expectations. The country’s trade deficit narrowed to C$593 million from a revised C$811 million deficit in June.

Tomorrow, the country’s jobs data is scheduled to be released. Most observers expect it will show a drop of 5,000 jobs for the month of August.

Most analysts will be keenly waiting for the US non-farm payrolls report. That is also expected to come out tomorrow.

Canadian bonds suffered losses Thursday after the country’s trade deficit narrowed more than expected.

Canada’s two-year bond yield was at 0.431% Thursday, up from 0.421% late Wednesday, according to electronic trading platform CanDeal. The 10-year bond yield was at 1.471%, up from 1.457%. Bond yields move inversely to prices.