July 7, 2014
By Commodity News Service Canada
Winnipeg – Canadian dollar settled slightly weaker on Monday, as the currency reacted to some softer-than-expected economic readings.
The Canadian currency late in the afternoon was quoted at US$0.9366 or US$1=C$1.0677. This compares with Friday’s North American close of US$0.9384, or US$=C$1.0657.
A report from Statistics Canada showing a 13.8% increase in building permits in May, compared to the previous month, initially provided some underlying support for the Canadian dollar.
However, the strength was short-lived as the currency eventually backed away from its early highs. An unexpected decline in the Ivey Purchasing Managers Index, which came in at 46.9, put some pressure on the currency as expectations had been for a reading closer to 52.0.
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The Bank of Canada’s latest survey of businesses also put some pressure on the Canadian dollar, as the results were seen as suggesting that the Bank would hold interest rates at low levels for the time being.
Canadian bonds were higher on Monday, as that market also reacted to the Bank of Canada’s survey and resulting expectations for slow economic growth.
