Thursday, September 17, 2009

Canadian Forex/Bond Comments:C$ strengthens

Winnipeg, MB, Jul 31, 2009 (Resource News International via COMTEX) -- The Canadian dollar closed stronger on Friday, after trading to both sides of unchanged over the course of the session. A generally weaker tone seen by the US dollar internationally provided some support.


The Canadian dollar was trading at 92.81 US cents or US$1=C$1.0775 near the close of trade Friday, which compares to Thursday's North American close of 92.23 US cents or US$1=C$1.0842.


Crude oil, gold, and other commodities were all higher on Thursday, which was supportive for the commodity-linked Canadian dollar. The advances in equities were also supportive, as market participants continued to show an increased appetite for risk on Friday.

The eventual strength in the Canadian dollar came despite softer-than-expected Canadian gross domestic product data. Statistics Canada reported that the country's gross GDP declined by 0.5% in May. Average market estimates had been for a more modest 0.3% decline, and the data initially weighed on the Canadian dollar.

Canadian markets will be closed Monday for a civic holiday.
Canadian bonds finished higher on Friday, outperforming their US counterparts. The soft Canadian GDP data contrasted with a better-than-expected reading out of the US, which accounted for some of the relative strength in the Canadian bond market, said analysts.

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