Canadian forex review: C$ firms

By Commodity News Service Canada

WINNIPEG, Oct. 28 – The Canadian dollar was slightly firmer compared to its US counterpart on Monday, recovering from last week’s weakness when the Canadian dollar lost more than 1.5 cents over a three day period.

The Canadian currency was quoted at US$0.9574 or US$1=C$1.0445 at the close on Monday, which compares with Friday’s North American close of US$0.9565 or US$=C$1.0455.

Expectations that the US Federal Reserve will decide to hold off on easing out of stimulus programs at their meeting this week helped to underpin the Canadian currency.

Gold and crude oil prices were slightly firmer, which lent a little bit of spillover support to the loonie, according to analysts.

Canadian bonds were slightly weaker amid a lack of fresh news on Monday, according to market watchers.

The two-year bond yielded 1.086% late Monday, from 1.084% late Friday. The 10-year bond yielded 2.423%, from 2.217%. Bond yields fall as their prices rise.