By Commodity News Service Canada
WINNIPEG, Oct. 8 – The Canadian dollar was up sharply on Wednesday, breaking back above 90 cents U.S. after the release of minutes from the latest US Federal Reserve meeting.
The minutes indicated that the U.S. Federal Reserve is in “no rush” to raise interest rates, which was bullish for the Canadian dollar, analysts said.
The Canadian dollar closed at U.S.$0.9006 or U.S.$1=C$1.1104 on Wednesday, which compares with Tuesday’s North American settlement of U.S.$0.8952 or U.S.$1=C$1.1171.
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Some spillover support also came from the sharp gains in gold prices on Wednesday, though weakness in crude oil was bearish for the Canadian currency.
Canadian building permits were in line with expectations, and had little impact on Canadian dollar. Canada Mortgage and Housing Corp. said housing starts came in at an annualized pace of 197,343 units for September, while expectations called for 198,000 units.
Traders were looking ahead to Friday, when Statistics Canada will release its latest employment figures.
Canadian bonds ended mostly higher Wednesday, following gains in the U.S. Treasury market after the U.S. Federal Reserve said they’re in no hurry to increase interest rates, brokers said.
The two-year bond yielded 1.055% late Wednesday, from 1.084% late Tuesday. The 10-year bond yielded 2.016%, from 2.029%. Bond yields fall as their prices rise.
