Canadian forex review: C$ falls below 94 cents US
By Commodity News Service Canada
WINNIPEG, Dec. 2 – The Canadian dollar closed lower against the US dollar Monday, falling below 94 cents US. Some of the weakness was linked to bearish US and Chinese manufacturing data, analysts said.
The Canadian currency was quoted at US$0.9398 or US$1=C$1.0641 at the close on Monday, which compares with Friday’s North American settlement of US$0.9416 or US$=C$1.0620.
Nervousness that the Bank of Canada will become even more dovish following their meeting later this week also weighed on the Canadian dollar.
Spillover pressure from the sharp declines seen in gold prices, and weakness in copper values, added to the bearish tone.
Canadian bonds moved lower following the release of better than expected US manufacturing data. Traders were also looking ahead to Wednesday’s Bank of Canada meeting, brokers said.
The two-year bond yielded 1.109% late Monday, from 1.097% late Friday. The 10-year bond yielded 2.607%, from 2.555%. Bond yields fall as their prices rise.