By Commodity News Service Canada
WINNIPEG, August 14 – The Canadian dollar firmed against its US counterpart on Wednesday, as positive global economic news caused traders to take on more risk, analysts said.
Euro zone officials reported that gross domestic product grew 0.3% in the region during the second quarter of 2013, which was better than expected.
The Canadian currency was quoted at US$0.9682, or US$1=C$1.0328 at the close on Wednesday, which compares with Tuesday’s North American close of US$0.9668, or US$=C$1.0343.
Talk that speculation that US Federal Reserve may ease out of stimulus programs soon is starting to affect the market less, as it’s already priced in, was also supportive.
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Some of the Canadian dollar’s strength also came from spill over support from the gains seen in commodities, including crude oil, gold and copper.
There was no significant Canadian economic data moving the Canadian dollar on Wednesday. Traders were looking ahead to later in the week when manufacturing, real estate and international trade reports will be released.
Canadian bonds moved mostly higher on Wednesday, finding some support from the gains seen in the US Treasury market, brokers noted.
The two-year bond yielded 1.200% late Wednesday, from 1.205% late Tuesday. The 10-year bond yielded 2.623%, unchanged from the previous day. Bond yields fall as their prices rise.
