By Commodity News Service Canada
WINNIPEG, September 23 – The Canadian dollar firmed against its US counterpart on Monday, underpinned by expectations that Tuesday’s Canadian retail sales data will be positive.
Traders generally expect that Statistics Canada will report that July retail sales increased by 0.6%, following a decline of 0.6% seen in June, according to market watchers.
The Canadian currency was quoted at US$0.9723, or US$1=C$1.0285 at the close on Monday, which compares with Friday’s North American close of US$0.9710, or US$=C$1.0299.
However, the Canadian dollar’s upside was limited by pressure from the losses seen in commodity prices, including crude oil and gold.
Canadian bonds were steady to higher Monday, finding some spillover support from the advances seen in the US Treasury market, participants said.
The two-year bond yielded 1.212% late Monday, from 1.212% late Friday. The 10-year bond yielded 2.651%, from 2.690%. Bond yields fall as their prices rise.
