Canadian Forex Review: C$ Eases

By Commodity News Service Canada

WINNIPEG, August 13 – The Canadian dollar eased against its US counterpart on Tuesday, undermined by positive US economic data, which may help the US Federal Reserve reduce stimulus programs sooner, analysts said.

The Canadian currency was quoted at US$0.9706, or US$1=C$1.0303 at the close on Tuesday, which compares with Monday’s North American close of US$0.9668, or US$=C$1.0343.

Sharp declines seen in gold futures also spilled over to weigh on the Canadian currency.

There was no significant Canadian economic data moving the Canadian dollar on Tuesday. Traders were looking ahead to later in the week when manufacturing, real estate and international trade reports will be released.

Canadian bonds moved lower, following the sell-off seen in the US Treasury market, traders said.

The two-year bond yielded 1.200% late Tuesday, from 1.147% late Monday. The 10-year bond yielded 2.621%, from 2.530%. Bond yields fall as their prices rise.