Canadian forex review: C$ closes lower

By Commodity News Service Canada

WINNIPEG, Nov. 19 – The Canadian dollar closed lower against the US dollar on Tuesday, with technical based selling behind some of the weakness, analysts said.

The Canadian currency was quoted at US$0.9550 or US$1=C$1.0471 at the close on Tuesday, which compares with Monday’s North American settlement of US$0.9586 or US$=C$1.0432.

A lack of fresh bullish news also weighed on the Canadian currency, as did recent weakness in commodity prices, participants added. Traders were looking ahead to Wednesday’s release of minutes from a recent US Federal Reserve meeting.

There was no significant Canadian economic data to report on Tuesday.

Canadian bonds were lower, following the declines seen in the US Treasury market amid a lack of fresh news, industry watchers said.

The two-year bond yielded 1.125% late Tuesday, from 1.104% late Monday. The 10-year bond yielded 2.563%, from 2.525%. Bond yields fall as their prices rise.