Canadian Forex Review: C$ Firms Slightly

By Commodity News Service Canada

WINNIPEG, December 24 – The Canadian dollar closed slightly higher against its US counterpart on Monday, amid light holiday activity and a shortened trading day. Markets will be closed in Canada on December 25 for Christmas and December 26 for Boxing Day.

The Canadian currency was quoted at US$1.0088, or US$1=C$0.9913 at the close on Monday, which compares with Friday’s North American close of US$1.0066, or US$=C$0.9934.

Traders were awaiting news regarding the US fiscal cliff budget talks before making any big moves, which kept the trade quiet. There were some concerns about the fiscal cliff overhanging the market, as there isn’t much time left to find a solution.

Commodity prices were soft, which limited the Canadian currency’s upside potential, market watchers noted. Crude oil, gold and copper all posted losses on Monday.

No Canadian economic indicators were released on Monday. Statistics Canada won’t release any more economic data releases until January 2013.

Canadian bonds moved lower on Monday. The two-year bond yielded 1.122 per cent and the 10-year bond yielded 1.816 per cent.