Canadian forex review: C$ eases

By Commodity News Service Canada

WINNIPEG, Oct. 7 – The Canadian dollar eased against its US counterpart on Monday, undermined by disappointing Canadian economic data.

According to Statistics Canada, building permits were down 21.2% in August, following a 21.4% increase in July. Pre-report expectations called for a 7.4% decrease in August.

The Canadian currency was quoted at US$0.9696 or US$1=C$1.0313 at the close on Monday, which compares with Friday’s North American close of US$0.9716 or US$=C$1.0292.

Some of the selling was also linked to concerns about the ongoing US government shutdown and how it may affect markets, analysts said.

However, spillover support from the upswing in gold values helped to limit the Canadian currency’s losses.

Canadian bonds were higher on Monday, as traders were attracted to “safe-haven” assets due to increased worries about the US government shutdown, brokers said.

The two-year bond yielded 1.187% late Monday, from 1.191% late Friday. The 10-year bond yielded 2.72%, from 2.582%. Bond yields fall as their prices rise.