By Commodity News Service Canada
Winnipeg – March 4/13 – CNS – The Canadian dollar was
trading at a fractionally weaker level versus the US currency in
late North American activity on Monday. Much of the action in the
Canadian unit was seen as consolidative in nature with
participants evening positions ahead of the Bank of Canada
interest rate decision later this week, market watchers said.
The Canadian currency late in the afternoon was quoted at
C$1.0277 (97.30 US cents). This compares with Friday’s late North
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No economic data of any significance was released in Canada
on Monday.
Some safe-haven buying of the US dollar at the expense of
the Canadian currency was evident, given the losses posted by
global crude oil during the session, brokers said.
Some political uncertainty in Italy also fueled the safe-
haven flows into the US dollar.
Canadian bonds were generally lower across the yield curve
on Monday with much of the weakness tie4d to investor uncertainty
ahead of a week filled with market-moving events, industry
watchers said.
Canada’s two-year bond yield was at 0.944% Monday, from
0.942% Friday. The 10-year bond yielded 1.806%, from 1.801%. Bond
yields move inversely to bond prices.
There were no major economic data released in North America
Monday, leaving fixed income to be influenced by overnight
releases that saw reflected economic weakness in Europe.
Manufacturing activity in the UK fell at its fastest pace in
three years, while lending activity slowed. In Italy, a fresh
round of political drama unfolded, with none of the country’s
political parties able to form a government. That creates the
possibility a new general election will take place in the next
few months.
With no Canadian data out on Tuesday, traders will beginto
take positions ahead of the Bank of Canada’s overnight target
rate announcement. The central bank is widely expected to stand
pat at 1.00%.
END
