By Commodity News Service Canada
Winnipeg – January 10/13 – CNS – The Canadian dollar was
trading at a firmer level versus the US currency in late North
American activity on Thursday. Some of the upswing in the value
of the Canadian dollar was associated with comments from European
Central Bank President Mario Draghi that lowered expectations of
an interest rate cut, market watchers said.
The Canadian currency late in the afternoon was quoted at
C$0.9843 (101.59 US cents). This compares with Wednesday’s late
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The Canadian dollar also strengthened following a speech by
Bank of Canada Senior Deputy Governor Tiff Macklem, the leading
candidate to replace Mark Carney, the current central bank
governor, after he leaves to head the Bank of England in July.
Firmness in the North American equity sector and gains in
global crude oil contributed to the upswing in the Canadian
currency, brokers said.
On Thursday, Canada reported a 17.9% decline in housing
permit applications in November, widely missing expectations of a
5.0% dip, according to RBC Capital Markets. Home prices advanced
by 0.1% in November, slightly under consensus of a 0.2% gain.
Canadian bonds finished on the defensive across the yield
risk-based assets and a pull back from fixed-income markets,
brokers said.
Canada’s two-year bond yield is at 1.196% Thursday, from
1.170% late Wednesday. The 10-year bond yields 1.948%, from
1.910%. Bond yields move inversely to bond prices.
Canadian bonds, along with their U.S. Treasury counterparts,
were under pressure Thursday after better trade surplus figures
from China during the overnight session, as well as a strong
Spanish bond auction, analysts said.
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