Canadian Forex/Bond Review: C$ Falls Lower

By Commodity News Service Canada

Winnipeg, August 25 – The Canadian dollar finished lower Tuesday in a thinly-traded market.

At 4:00 CDT Tuesday, the loonie was at US$0.7490 or US$1 = C$1.3351.

The loonie hit a multi-year low Tuesday afternoon as investors turned to the American greenback in a sea of uncertainty. The lingering effects of Monday’s Chinese stock market crash continued to echo throughout the financial world.

A new reading of US consumers found a surprising level of confidence in the US economy, according to a report.

The absence of any major Canadian economic data this week has traders closely monitoring global financial conditions for direction, said participants.

Canadian bonds also finished lower, reversing their direction from yesterday when investors flocked to fixed-term assets.

Canada’s two-year bond yield was at 0.360% Tuesday, up from 0.322% late Monday, according to electronic trading platform CanDeal. The 10-year bond yield was at 1.338%, up from 1.265%. Bond yields move inversely to prices.

The Bank of Canada says it plans to sell bonds during the morning session.