Canadian forex review: C$ falls below 77 cents US

By Commodity News Service Canada

WINNIPEG, July 20 – The Canadian dollar moved lower on Monday, falling below the key 77 cents US mark as crude oil values dropped, analysts said.

The Canadian dollar closed at US$0.7694 or US$1=C$1.2997 on Monday, which compares with Friday’s North American settlement of US$0.7700 or US$1=C$1.2987.

The selling was also linked to last week’s Bank of Canada interest rate cut announcement and disappointing Canadian wholesale trade figures. Statistics Canada said wholesale sales dropped 1.0 per cent to C$54.5 billion in May, while traders anticipated sales to be flat.

However, positive domestic inflation data on Friday limited the downside, as did ideas that recent losses are looking overdone.

Canadian bonds were mostly softer on Monday, following weakness in the US government debt market, brokers said.

The two-year bond yielded 0.427% on Monday, unchanged from Friday. The ten-year bond yield was at 1.577%, from 1.564%. Bond yields rise as their prices fall.