Canadian forex review: C$ eases

By Commodity News Service Canada

WINNIPEG, September 24 – The Canadian dollar eased against its US counterpart on Tuesday, undermined by weakness in commodity prices, including crude oil, gold and copper, analysts said.

The Canadian currency was quoted at US$0.9707 or US$1=C$1.0302 at the close on Tuesday, which compares with Monday’s North American close of US$0.9723 or US$=C$1.0285.

Canadian retail sales data was released by Statistics Canada Tuesday morning, and was only slightly supportive for the Canadian currency because the report was in line with expectations. StatsCan reported that Canadian retail sales increased by 0.6% to C$40.3 billion in July, following a 0.6% decline in June.

Canadian bonds were mostly higher, following along with the advances seen in the US Treasury market, according to participants.

The two-year bond yielded 1.208% late Tuesday, from 1.210% late Monday. The 10-year bond yielded 2.594%, from 2.534%. Bond yields fall as their prices rise.