Canadian Forex/Bond Review: C$ Climbs With Crude Oil

By Commodity News Service Canada

Winnipeg, August 31 – The Canadian dollar rallied Monday as gains in crude oil pushed the market higher.

At 4:00 CDT Monday, the loonie was at US$0.7618 or US$1 = C$1.3127.

US crude oil gained 7.4% on the New York Mercantile exchange, to hit its highest point since July 21. The market surged on rumours OPEC may reduce production.

Investors are anxiously waiting for a slew of financial indicators due to be released this week. They include GDP data for June, international trade figures and North American job numbers.

Canadian bonds finished lower on speculation the US Federal Reserve may raise interest rates sooner than expected.

Canada’s two-year bond yield was at 0.436% Monday, from 0.417% late Friday, according to electronic trading platform CanDeal. The 10-year bond yield was at 1.479%, from 1.445%. Bond yields move inversely to prices.