Canadian forex review: C$ closes unchanged

By Commodity News Service Canada

WINNIPEG, September 30 – The Canadian dollar closed unchanged against its US counterpart, as traders were waiting to see whether or not the US government will shut down at midnight before making any big moves, analysts said.

The Canadian currency was quoted at US$0.9706 or US$1=C$1.0303 at the close on Monday, which compares with Friday’s North American close of US$0.9706 or US$=C$1.0303.

Some support for the Canadian dollar came from better than expected Canadian gross domestic product data. According to Statistics Canada, GDP grew 0.6% in July, up from a 0.5% decline in June.

On the other side, spillover pressure from the losses seen in commodities, including crude oil and gold, was bearish for the loonie.

Canadian bonds were slightly higher, with traders in the market also being cautious ahead of the possible shutdown of the US government at midnight.

The two-year bond yielded 1.194% late Monday, from 1.202% late Friday. The 10-year bond yielded 2.548%, from 2.558%. Bond yields fall as their prices rise.