Canadian Forex Review: C$ Strengthens

By Commodity News Service Canada

Winnipeg – March 7/13 – CNS – The Canadian dollar was

trading at slightly firmer level versus the US currency in late

North American activity on Thursday. Friendly economic data in

Canada and an increased willingness to hold riskier currencies

helped to strengthen the Canadian dollar, market watchers said.

The Canadian currency late in the afternoon was quoted at

C$1.0291 (97.17 US cents). This compares with Wednesday’s late

North American quote of C$1.0315 (96.95 US cents).

Statistics Canada on Thursday reported that Canada’s trade

deficit narrowed in January to 237 million Canadian dollars from

C$332 million in December, and was considerably smaller than the

expected C$600 million shortfall. Exports advanced 2.1%, while

imports rose 1.9%.

The advances posted by global crude oil during the session

also aided in the upswing in the value of the Canadian currency,

brokers said.

On Friday, February jobs data for both Canada and the US

will be released. Pre-report expectations are suggesting that

about 8,000 were created in Canada that month, after a decline of

21,900 in January.

Canadian bonds were generally wealer across the yield curve

on Thursday following the path of US Treasurys.

Canada’s two-year bond yield was at 0.955% Thursday, from

0.934% Wednesday. The 10-year bond yielded 1.879%, from 1.849%.

Bond yields move inversely to bond prices.