By Commodity News Service Canada
WINNIPEG, May 4 – The Canadian dollar ended stronger against the US dollar Monday, as Canadian rates were a bit higher compared to the US, which was supportive, analysts said.
The Canadian dollar closed at US$0.8270 or US$1=C$1.2092 on Monday, which compares with Friday’s North American settlement of US$0.8226 or US$1=C$1.2157.
Strength in gold prices was also underpinning the Canadian dollar, though weakness in crude oil was bearish, market watchers said.
Ongoing signs of economic recovery in the US continued to overhang the Canadian dollar.
There was no significant Canadian economic data released on Monday. Traders were looking ahead to Friday’s US and Canadian employment reports.
Canadian bonds ended softer on Monday, with speculation that the Bank of Canada could lower interest rates again behind the weakness, brokers said.
The two-year bond yielded 0.711% late Monday, from 0.708% late Friday. The 10-year bond yield was at 1.711%, from 1.657%. Bond yields fall as their prices rise.
