By Commodity News Service Canada
WINNIPEG, June 23 – The Canadian dollar continued to climb higher against the US dollar on Monday, seeing some follow-through buying on Friday’s sharp rally, analysts said.
Better than expected Canadian inflation data released on Friday continued to be supportive for the Canadian dollar, as it could mean the Bank of Canada will look at raising interest rates sooner than expected.
The Canadian dollar closed at US$0.9323 or US$1=C$1.0726 on Monday, which compares with Friday’s North American settlement of US$0.9300 or US$1=C$1.0752.
Some of the strength was also linked to positive Chinese manufacturing data, which showed that the sector is starting to expand, brokers added.
Further spillover support came from the advances seen in commodity prices, including crude oil, copper and gold.
Canadian bonds closed lower on Monday, continuing to react to Friday’s better than expected inflation and retail sales data, traders said.
The two-year bond yielded 1.142% late Monday, from 1.134% late Friday. The 10-year bond yielded 2.331%, from 2.298% Friday. Bond yields fall as their prices rise.
