By Commodity News Service Canada
WINNIPEG, August 18 – The Canadian dollar was holding steady relative to the US dollar on Monday, as traders were awaiting fresh market moving news, analysts said.
Traders will be closely watching Friday’s keynote speech from US Federal Reserve chair Janet Yellen following the bank’s annual meeting, as it has historically been market moving, brokers say.
Friday will also mark the release of Canadian retail sales figures and inflation data, while the US consumer price index will be out on Tuesday.
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The Canadian dollar closed at US$0.9186 or US$1=C$1.0886 on Monday, which compares with Friday’s North American settlement of US$0.9184 or US$1=C$1.0889.
Some support for the Canadian dollar came from increased risk appetite as political tension between Ukraine and Russia eased over the weekend.
However, spillover pressure from weakness seen in commodities, including crude oil and gold prices, was bearish for the loonie.
Canadian bonds ended sharply lower on Monday, as traders were backing away from safe-haven assets due to easing concerns about the political problems in Ukraine and Russia, participants said.
The two-year bond yielded 1.073% late Monday, from 1.054% late Friday. The 10-year bond yielded 2.064%, from 2.018%. Bond yields fall as their prices rise.
