Canadian forex review: C$ firms

By Commodity News Service Canada

WINNIPEG, Dec. 16 – The Canadian dollar closed slightly higher against the US dollar on Monday amid positioning ahead of the US Federal Reserve meeting later this week, analysts said.

The Canadian currency was quoted at US$0.9446 or US$1=C$1.0587 at the close on Monday, which compares with Friday’s North American settlement of US$0.9438 or US$=C$1.0595.

Further support for the Canadian dollar came from the advances seen in commodities, including crude oil, gold and copper prices.

However, disappointing Canadian housing and trade data helped to limit the upside.

Canadian bonds were slightly lower on Monday. Traders were being cautious ahead of the US Federal Reserve meeting later this week, brokers noted.

The two-year bond yielded 1.115% late Monday, from 1.106% late Friday. The 10-year bond yielded 2.675%, from 2.662%. Bond yields fall as their prices rise.