Canadian forex review: C$ eases

By Commodity News Service Canada

WINNIPEG, Oct. 1 – The Canadian dollar eased against its US counterpart on Tuesday, as traders were avoiding risk due concerns about the effects that the shutdown of the US government will have on the economy, analysts said.

The Canadian currency was quoted at US$0.9685 or US$1=C$1.0325 at the close on Tuesday, which compares with Monday’s North American close of US$0.9706 or US$=C$1.0303.

Expectations that the Bank of Canada will lower its estimates for economic growth during the last half of 2013 were bearish as well.

Spillover pressure from the losses seen in commodities, including crude oil, gold and copper, further undermined the Canadian currency.

Canadian bonds were little changed as traders weighed concerns about the effects of the US government shutdown and expectations that the closure will not last a long time.

The two-year bond yielded 1.193% late Tuesday, from 1.194% late Monday. The 10-year bond yielded 2.545%, from 2.544%. Bond yields fall as their prices rise.