Canadian forex review: C$ slightly weaker

By Commodity News Service Canada

WINNIPEG, May 11 – The Canadian dollar ended slightly weaker relative to the US dollar after a day of choppy activity Monday.

The Canadian dollar closed at US$0.8258 or US$1=C$1.2110 on Monday, which compares with Friday’s North American settlement of US$0.8271 or US$1=C$1.2090.

Softness in crude oil values helped to weigh on the loonie, as did worries about economic problems in Greece, according to analysts.

Traders were shedding riskier assets, including the Canadian dollar, as they wait for news out of a meeting between European finance ministers regarding the Greek debt crisis later in the week.

Though, sentiment that the Canadian dollar is looking oversold limited the downside, as did easing worries about possible interest rate cuts in Canada.

Canadian bonds were lower on Monday, following the US Treasury market. Both Canadian and US bonds were said to be correcting lower after recent gains.

The two-year bond yielded 0.703% late Monday, from 0.661% late Friday. The 10-year bond yield was at 1.818%, from 1.697%. Bond yields fall as their prices rise.