Canadian forex review: C$ eases

By Commodity News Service Canada

WINNIPEG, Nov. 5 – The Canadian dollar moved closed lower against the US dollar Tuesday, undermined by spillover from the weakness seen in crude oil values, analysts said.

The Canadian currency was quoted at US$0.9562 or US$1=C$1.0458 at the close on Tuesday, which compares with Monday’s North American settlement of US$0.9599 or US$=C$1.0418.

Some of the weakness was also linked to positive US economic data. The Institute of Supply Management reported that their service sector index unexpectedly increased to 55.4 points in October, from 54.4 points in September.

There was no significant Canadian economic data to report on Tuesday. Traders were looking ahead to later in the week when building permits and employment data will be released by Statistics Canada.

Canadian bonds were lower, undermined by downward pressure from positive data from the US service sector, industry officials said.

The two-year bond yielded 1.130% late Tuesday, from 1.117% late Monday. The 10-year bond yielded 2.529%, from 2.493%. Bond yields fall as their prices rise.