By Commodity News Service Canada
WINNIPEG, September 3 – The Canadian dollar was unchanged compared to its US counterpart for the second trading day in a row on Tuesday.
Activity was described as choppy as traders were positioning themselves ahead of the Bank of Canada’s interest rate announcement on Wednesday.
The Canadian currency was quoted at US$0.9497, or US$1=C$1.0530 at the close on Tuesday, which compares with Friday’s North American close of US$0.9497, or US$=C$1.0530. Canadian and US markets were closed for Labour Day on Monday.
Some support came from strong commodity prices, as well as improved risk sentiment as conflicts in Syria start to settle down, analysts said.
On the other side, positive US manufacturing data was bearish, as it reinforced ideas that the US Federal Reserve will start easing out of stimulus programs soon.
Canadian bonds moved lower in reaction to the release of strong US manufacturing data on Tuesday, according to market watchers.
The two-year bond yielded 1.223% late Tuesday, from 1.192% late Friday. The 10-year bond yielded 2.682%, from 2.612% Bond yields fall as their prices rise.
