Canadian Forex Review: C$ strengthens

By Commodity News Service Canada

Winnipeg, September 16 – The Canadian dollar closed stronger against its
US counterpart on Monday, underpinned by news that Lawrence Summers decided
to leave the race to replace US Federal Reserve Chairman Ben Bernanke when he
departs, analysts said.
Further strength came from a Statistics Canada report that said foreign
investors purchased C$6.1 billion of Canadian securities in July, after a
C$15.4 billion divestment in June, brokers said.
The Canadian currency late in the afternoon was quoted at C$0.9685
(US$1.0325). This compares with Friday’s late North American quote of
C$0.9665 (US$1.0347).
Gains seen in commodities, including copper and gold, added to the
loonie’s bullish tone.
Canadian bonds were mixed on Monday, following reports that Lawrence
Summers had withdrawn from the race to be the next chairman of the US Federal
Reserve, industry watchers said.
Canada’s two-year bond yield is at 1.266% Monday, from 1.283% Friday,
according to electronic-trading platform CanDeal. The 10-year bond yielded
2.793%, from 2.766%.