By Commodity News Service Canada
WINNIPEG, Nov. 26 – The Canadian dollar firmed relative to the US dollar on Wednesday, after a quiet day as traders squared positions ahead of Thanksgiving in the US on Thursday. US markets will be closed, while Canadian markets will be open.
The Canadian dollar closed at US$0.8900 or US$1=C$1.1236 on Wednesday, which compares with Tuesday’s North American settlement of US$0.8887 or US$1=C$1.1253.
The Canadian dollar was underpinned by follow-through buying on Tuesday’s advance, and recent positive domestic economic data, analysts said.
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However, the crude oil market continued to decline sharply on Wednesday, which was helping to limit the upside of the commodity-based Canadian currency.
With a lack of direction coming from the US dollar on Thursday, traders will be focusing on an Organization of Petroleum Exporting Countries (OPEC) meeting. The industry hopes the meeting will result in an agreement to reduce oil production, so prices won’t continue dropping.
Traders were also looking ahead to Friday when Statistics Canada will release September and third quarter gross domestic product data.
Canadian bonds closed higher amid quiet activity on Wednesday, following the gains seen in the US Treasury market ahead of the US Thanksgiving holiday, brokers said.
The two-year bond yielded 1.041% late Wednesday, from 1.046% late Tuesday. The 10-year bond yielded 1.931%, from 1.946%. Bond yields fall as their prices rise.
