Canadian Dollar Strengthens Against US Currency Amid Global Market Fluctuations

Strategic Insights -

The Canadian dollar finished a stronger session on December 29, 2004, driven by rising global crude oil values and technical buying, analysts said. Activity was thin due to the ongoing holiday atmosphere. The Canadian currency concluded the day at C$1.2132 or 82.43 US cents, a significant increase from the previous Friday's late North American quote of C$1.2293 or 81.35 US cents.

Key Takeaways:

  • The Canadian dollar strengthened against the US currency due to rising global crude oil values and technical buying.
  • The currency's firmness was a departure from the US dollar's decline against most other currencies after sustained selling earlier in the week.
  • Analysts expect an increase in market activity in the new year, with pivotal events including nonfarm payrolls data on January 7 and a meeting of G-7 finance ministers in early February.
  • Canadian bond markets settled lower across the yield curve in generally choppy activity due to weakness in US Treasury markets.
  • The Bank of Canada announced a repurchase operation, purchasing a total of C$625.4 million in government marketable bonds on behalf of the Government of Canada.

Statistics:

  • December 29, 2004: The Canadian dollar finished at C$1.2132 or 82.43 US cents.
  • December 24, 2004: The Canadian dollar traded at C$1.2293 or 81.35 US cents.
  • C$625.4 million: The total amount of government marketable bonds purchased in the repurchase operation.
  • January 7, 2005: Nonfarm payrolls data will be released.
  • Early February 2005: A meeting of G-7 finance ministers will take place.

Sources:

  • Resource News International via COMTEX. "Canadian Dollar Ends Higher/Lower On Global Markets."
  • Resource News International, Copyright 2004 Resource News International News Provided by COMTEX (http://www.comtexnews.com)