Canadian Forex Review: C$ closes lower

By Commodity News Service Canada

Winnipeg, January 6 – The Canadian dollar closed lower against its US
counterpart on Monday, as Sunday’s comments from Canadian Finance Minister
Jim Flaherty regarding the loonie were bearish, participants said.
According to reports, Flaherty said there could be further softening
seen in the value of the Canadian dollar, which would help Canadian
manufacturers.
Losses seen in commodities, including gold and crude oil, added to the
downward pressure.
However, strong Canadian economic data limited any further losses,
industry watchers said. Statistics Canada reported that the industrial
product price index moved 0.1% higher in November, following a disappointing
0.3% decline in October.
The Canadian currency late in the afternoon was quoted at C$0.9388
(US$1.0651). This compares with Friday’s late North American quote of
C$0.9399 (US$1.0639).
Canadian bonds were up on Monday, as weaker-than-expected US economic
data led to some questions regarding how strong the US economy really is,
participants said.
Canada’s two-year bond yield is at 1.134% on Monday, from 1.139% on
Friday, according to electronic trading platform CanDeal. The 10-year bond
yielded 2.721%, from 2.754%.