Canadian Forex Review: C$ Eases

By Commodity News Service Canada

Winnipeg – January 15/13 – CNS – The Canadian dollar was
trading at a fractionally weaker level versus the US currency in
late North American activity on Tuesday. The Canadian unit was
confined to a narrow range Tuesday with market participants
waiting for fresh developments on the currency front to work
with, market watchers said.

Weakness in global crude oil helped to prompt a bit of a
downswing in the value of the Canadian dollar while general
strength in the North American equity sector generated some

Canadian Financial Close: Loonie higher, TSX sets new record

Glacier FarmMedia – The Canadian dollar gained some ground on Friday and will end the week on a high note….

underlying support, brokers said.

A report from the Canadian real Estate Association showing
that existing home sales wwere down 0.5% in December put a little
bit of downward pressure on the Canadian unit earlier in the day,
analysts said.

The Canadian currency late in the afternoon was quoted at
C$0.9845 (101.57 US cents). This compares with Monday’s late
North American quote of C$0.9837 (101.65 US cents).

Canadian bonds finished with advances across the yield curve
on Tuesday with some of the strength related to the gains posted
by US Treasuries, brokers said.

The gains in US Treasuries reflected suggestions from US
Federal Reserve Chairman Ben Bernanke that the US central bank’s
aggressive bond-buying program is likely to continue chugging

along for some time.

Canada’s two-year bond yield was at 1.182% late Tuesday,
from 1.198% late Monday. The 10-year bond yielded 1.907%, from
1.943%. Bond yields move inversely to bond prices.

Existing home sales data from the Canadian Real Estate
Association for December showed that despite a 17.4% slide in
home sales activity in December from the year ago level, the
average home price help up nationally, climbing 1.6% over the
same period.

In the US data were mixed, with retail sales climbing more
than expected in December, but with US wholesale prices meanwhile
sliding slightly and a New York regional manufacturing index
showing contraction.
END