By Commodity News Service Canada
WINNIPEG, September 15 – The Canadian dollar closed firmer relative to the US dollar on Monday, seeing an upward correction following last week’s sharp declines, analysts said.
The Canadian dollar closed at US$0.9050 or US$1=C$1.1050 on Monday, which compares with Friday’s North American settlement of US$0.9014 or US$1=C$1.1094.
Strength in crude oil and gold prices was also bullish. Though, disappointing Chinese economic data limited the Canadian currency’s upside.
Some traders were also avoiding riskier assets, including the Canadian dollar, due to uncertainty surrounding Thursday’s Scottish independence vote.
Position squaring in the Canadian and US dollars ahead of the US Federal Reserve’s interest rate announcement on Wednesday was a feature of the activity.
Canadian bonds ended mostly higher on Monday, following the advances seen in the US Treasury market as the trade was awaiting fresh market moving news, participants said.
The two-year bond yielded 1.151% late Monday, from 1.159% late Friday. The 10-year bond yielded 2.235%, from 2.240%. Bond yields fall as their prices rise.
