By Commodity News Service Canada
Winnipeg – December 6/12 – CNS – The Canadian dollar was trading at a level that was little changed versus the US currency in late North American activity on Thursday. The absence of significant price swings in the value of the Canadian unit was associated with participants taking to the sidelines to await economic data due out on Friday in both the US and Canada, market watchers said.
US and Canadian labour data will be released early Friday.
The Canadian currency late in the afternoon was quoted at C$0.9913 (100.87 US cents). This compares with Wednesday’s late North American quote of C$0.9917 (100.83 US cents).
Read Also
Canadian Financial Close: C$ firm Friday
Glacier FarmMedia — The Canadian dollar strengthened Friday, as dovish comments out of the United States Federal Reserve weighed on…
Movement in the Canadian unit was also restricted by the absence of volatility, which in turn kept the currency in a narrow range.
In US data released Thursday, new jobless claims dropped by 25,000 to 370,000 in the week ended Dec. 1, slightly below 375,000 claims expected by economists.
In Canada, the Ivey Purchasing Managers Index for November came in at 47.5 on a seasonally adjusted basis, a decline from a reading of 58.3 in the previous month.
Friday’s labour figures may help to stimulate some movement in the currency markets, brokers said. Canada is expected to have added 10,000 new jobs in November, while its jobless rate should stay at 7.4%, according to a report by Royal Bank of Canada.
Canadian bonds were firmer along the yield curve on Thursday as investors continued to place cautious bets on fixed-income on mounting concerns related to the US fiscal cliff, market watchers said.
Canada’s two-year bond yield is at 1.038% Thursday, from 1.046% late Wednesday. The 10-year bond yields 1.684%, from 1.689%. Bond yields move inversely to bond prices.
Overall, Canadian bonds were relatively unchanged Thursday, ahead of a pair of labour reports in the US and Canada.
