By Commodity News Service Canada
WINNIPEG, Nov. 18 – The Canadian dollar closed firmer against the US dollar on Monday, with some of the strength linked to positive economic announcements from the Chinese government, analysts said.
China announced that it will be changing reforms, including relaxing its rule single child rule and getting rid of labour camps, which helped improve risk sentiment.
The Canadian currency was quoted at US$0.9586 or US$1=C$1.0432 at the close on Monday, which compares with Friday’s North American settlement of US$0.9572 or US$=C$1.0447.
Positive Canadian economic data was also supportive. Statistics Canada reported that foreign investment in Canadian securities totaled $8.4 billion in September, the highest in five months.
However, spillover pressure from the declines seen in commodities, including crude oil and gold, helped to limit the Canadian dollar’s upside.
Canadian bonds were higher on Monday, following the gains seen in the US Treasury market, participants said.
The two-year bond yielded 1.104% late Monday, from 1.117% late Friday. The 10-year bond yielded 2.524%, from 2.562%. Bond yields fall as their prices rise.
