By Commodity News Service Canada
Winnipeg – December 31/12 – CNS – The Canadian dollar was
trading at a firmer level versus the US currency in late North
American activity on Monday. The upswing in the value of the
Canadian unit reflected strong economic data from China as well
as the upward bias in global crude oil, market watchers said.
Strength in the North American equity sector also helped to
propel the Canadian dollar to firmer ground, brokers said.
The Canadian currency late in the afternoon was quoted at
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North American quote of C$0.9961 (100.39 US cents).
Data out of China showed that the country’s manufacturing
sector grew at its fastest pace since May 2011 during the month
of December.
The upside in the Canadian currency was capped by invesdtor
concern about the impending US fiscal cliff. However, market
participants were optimistic that even if a deal is not reached
by the midnight deadline, US lawmakers will find a way to avoid
falling into another recession.
Canadian bonds finished with small losses across the yield
curve on Monday with the weakness tied to optimism that US
lawmakers might yet strike a budget deal and avoid the so-called
fiscal cliff, market watchers said.
Investors were hopeful that US President Barack Obama would
announce that a budget deal had been reached. Obama is expected
to speak at the White House sometime Monday afternoon.
Canada’s two-year government bond yield was at 1.144% late
Monday afternoon as the Canadian bond market closed ahead of the
New Year’s holiday. It was at 1.130% late Friday. The 10-year
yielded 1.799%, from 1.769%. Bond yields move inversely to bond
prices.
Canada’s bond market closed early, at 1 pm EST Monday, and
will remain shuttered Tuesday for New Year’s Day.
END
