Canadian forex review: C$ eases

By Commodity News Service Canada

WINNIPEG, Feb. 10 – The Canadian dollar closed weaker compared to the US dollar on Monday, undermined by profit taking after Friday’s advance, analysts said.

The Canadian dollar closed at US$0.9046 or US$1=C$1.1055 on Monday, which compares with Friday’s North American settlement of US$0.9059 or US$=C$1.1039.

Disappointing Canadian housing starts data was also responsible for some of the weakness. Canada Mortgage and Housing Corp. reported housing starts were down 3.7% in January.

However, spillover support from the firmness in crude oil and gold prices helped to limit the downside.

Canadian bonds were lower, following the losses seen in the US Treasury market, industry watchers said.

The two-year bond yielded 0.983% late Monday, from 0.979% late Friday. The 10-year bond yielded 2.411%, from 2.402%. Bond yields fall as their prices rise.