By Commodity News Service Canada
WINNIPEG, June 8 – The Canadian dollar ended firmer against the US dollar after a day of choppy activity on Monday.
The Canadian currency benefited from a broadly weaker US dollar, after reports said the US government believes strength in the greenback is a problem, market watchers said.
The Canadian dollar closed at US$0.8066 or US$1=C$1.2398 on Monday, which compares with Friday’s North American settlement of US$0.8039 or US$1=C$1.2439.
Further support came from Friday’s better than expected Canadian jobs data, and positive Canadian housing starts data released Monday.
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In May, about 201,705 new houses began construction, up 10 per cent from the month prior, data from Canada Mortgage and Housing Corporation shows.
However, weakness in crude oil values was bearish, as it is one of Canada’s biggest exports. Expectations that the US Federal Reserve will raise interest rates at some point in 2015 were also overhanging the Canadian currency.
Canadian bonds were up slightly on Monday, seeing an upward correction following Friday’s sharp declines, according to participants.
The two-year bond yielded 0.631% Monday, from 0.639% late Friday. The 10-year bond yield was at 1.817%, from 1.827%. Bond yields fall as their prices rise.
