By Commodity News Service Canada
Winnipeg – January 21/13 – CNS – The Canadian dollar was
trading at a weaker level versus the US currency in late North
American activity on Monday. Light liquidation of the Canadian
currency in thin holiday activity accounted for some of the
downswing, market watchers said.
The weakness also reflected investor concerns surrounding
monetary easing in Japan.
The Canadian currency late in the afternoon was quoted at
C$0.9931 (100.69 US cents). This compares with Friday’s late
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The Canadian dollar also shrugged off better-than-expected
wholesale trade data for November, rising 0.7% in the month,
compared to expectations of a 0.5% gain, according to Statistics
Canada.
Currency markets were, as a whole, quiet in the North
American session due to the Martin Luther King Jr. Holiday.
On Tuesday, Canadian retail sales figures will be released.
The Bank of Canada’s policy rate announcement and release of its
quarterly Monetary Policy Report will also be a key driver of
the currency on Wednesday, analysts said.
Canadian bonds finished with losses across the curve on
Monda ahead of an upcoming central bank meeting, market watchers
said.
Canada’s two-year bond yield is at 1.190% Monday, from
Bond yields move inversely to bond prices.
Canadian bonds moved broadly lower after better-than-expected wholesale trade figures for November were reported, analysts said.
Volumes were lower than usual due to the Martin Luther King
Jr. Holiday.
END
