Canadian forex review: C$ firms

By Commodity News Service Canada

WINNIPEG, Dec. 9 – The Canadian dollar firmed against the US dollar on Monday, recovering from recent sharp declines, analysts said.

The Canadian currency was quoted at US$0.9403 or US$1=C$1.0635 at the close on Monday, which compares with Friday’s North American settlement of US$0.9384 or US$=C$1.0656.

Spillover support from the gains seen in gold prices lifted the Canadian dollar’s value, as did strong Chinese export data, brokers noted.

However, continued worries that the US Federal Reserve will back out of stimulus programs soon, due to positive US economic data, limited the upside.

Canadian bonds moved higher on Monday, following to same action seen in the US Treasury market, according to industry watchers.

The two-year bond yielded 1.084% late Monday, from 1.094% late Friday. The 10-year bond yielded 2.679%, from 2.690%. Bond yields fall as their prices rise.