By Commodity News Service Canada
WINNIPEG, Nov. 5 – The Canadian dollar was firmer relative to the US dollar on Wednesday, reacting to a rebound in crude oil prices, analysts said.
Oil prices were lifted by smaller than expected US oil supplies, as well as reports that Libya will export less of the commodity than first anticipated, traders noted.
The Canadian dollar closed at US$0.8780 or US$1=C$1.1389 on Wednesday, which compares with Tuesday’s North American settlement of US$0.8764 or US$1=C$1.1410.
Sentiment that the Canadian dollar’s recent drop was too far, too fast, also uncovered some chart-based buying, brokers said.
There was no significant Canadian economic data reported on Wednesday. Traders were looking ahead to employment data from both Canada and the US on Friday.
Canadian bonds closed lower on Wednesday, reacting to the upward movement seen in outside stock markets, according to participants.
The two-year bond yielded 1.006% late Wednesday, from 0.983% late Tuesday. The 10-year bond yielded 2.042%, from 2.028%. Bond yields fall as their prices rise.
