Canadian forex review: C$ recovers from recent losses

By Commodity News Service Canada

WINNIPEG, Jan. 13 – The Canadian dollar moved higher against the US dollar on Monday, seeing a corrective recovery following last week’s sharp decline, analysts said.

The Canadian currency closed at US$0.9220 or US$1=C$1.0846 on Monday, which compares with Friday’s North American settlement of US$0.9173 or US$=C$1.0901.

Further support came from a positive Bank of Canada business outlook survey, which reported that there are some signs that things are improving in the Canadian business sector.

Spillover support for the Canadian currency also came from the strength in gold values, brokers added. However, weakness in crude oil values limited its upside potential.

Canadian bonds closed mixed, with some weakness linked to the positive Bank of Canada business outlook survey, traders said.

The two-year bond yielded 1.038% late Monday, from 1.000% late Friday. The 10-year bond yielded 2.545%, from 2.560%. Bond yields fall as their prices rise.