By Commodity News Service Canada
Winnipeg – April 29/13 – CNS – The Canadian dollar was
trading at a firmer level versus the US currency in late North
American activity on Monday. Investor confidence in riskier
assets helped the Canadian dollar move to stronger ground, market
watchers said.
The Canadian currency late in the afternoon was quoted at
C$1.0113 (98.88 US cents). This compares with Friday’s late
North American quote of C$1.0169 (98.34 US cents).
Some of the upswing in the Canadian currency was also linked
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On Tuesday, gross domestic product data for February will be
released.
Economists expect the Canadian economy grew by 0.2% in
February from the previous month, according to the Royal Bank of
Canada.
Canadian bonds ended higher along the yield curve on
Monday as investors moved cautiously ahead of the US Federal
Reserve’s policy announcement Wednesday and other potentially
market-moving events in the coming days, market watchers said.
Canada’s two-year bond yield was at 0.934% Monday, down from
0.936% last Friday. The 10-year bond yielded 1.699%, down from
1.705%. Bond yields move inversely to bond prices.
The Canadian bond market took direction from US Treasurys,
to an extent, but managed to retain its gains as some maturities
slipped into the red in afternoon trading.
US Treasurys gained ground after news that consumption
expenditures, the Fed’s preferred measure for inflation, was up
only 1.0% year-over-year in March. The core PCE index, which
excludes volatile food and energy prices, was up 1.1% from a year
earlier.
Markets have priced in a dovish tilt in the US central
bank’s statement at the conclusion of its two-day policy meeting
Wednesday.
There were no significant data releases in Canada on Monday.
END
