Canadian forex review: C$ nearly unchanged

By Commodity News Service Canada

WINNIPEG, August 26 – The Canadian dollar was nearly unchanged compared to its US counterpart on Monday amid light activity and a lack of significant fresh news, analysts said.

The Canadian currency was quoted at US$0.9521, or US$1=C$1.0503 at the close on Monday, which compares with Friday’s North American close of US$0.9523, or US$=C$1.0501.

The release of disappointing US durable goods orders was slightly supportive, but traders still expect the US Federal Reserve will ease out of stimulus programs sooner rather than later.

Strength seen in gold prices was supportive, while spillover pressure from the losses seen in crude oil and copper was bearish for the Canadian dollar.

Traders were looking ahead to Friday, when Statistics Canada is set to release Canadian growth data for the second quarter of 2013.

Canadian bonds moved higher, following the US Treasury market. Support came from disappointing US durable goods orders data. Orders declined 7.3% in July, which was below expectations of a 4% fall.

The two-year bond yielded 1.187% late Monday, from 1.193% late Friday. The 10-year bond yielded 2.654%, from 2.694% Bond yields fall as their prices rise.