By Commodity News Service Canada
WINNIPEG, July 22 – The Canadian dollar strengthened against its US counterpart on Monday, lifted by sharply higher gold prices, analysts said.
The Canadian currency was quoted at US$0.9667, or US$1=C$1.0344 at the close on Monday, which compares with Friday’s North American close of US$0.9468, or US$=C$1.0367.
General weakness in the value of the US dollar was also helping the Canadian currency advance on Monday, participants said.
There was no significant Canadian economic data to report on Monday. But, expectations that Tuesday’s retail sales data report will be bullish helped to underpin the loonie.
However, declines seen in crude oil helped to limit the Canadian dollar’s upside potential.
Canadian bonds closed mixed amid a lack of fresh news and light activity, market watchers said.
The two-year bond yielded 1.090% late Monday, from 1.085% late Friday. The 10-year bond yielded 2.360%, from 2.358%. Bond yields fall as their prices rise.
