By Commodity News Service Canada
WINNIPEG, July 14 – The Canadian dollar was firmer relative to the US dollar on Monday, seeing a recovery following Friday’s sharp drop in value, analysts said.
The Canadian dollar closed at US$0.9333 or US$1=C$1.0715 on Friday, which compares with Thursday’s North American settlement of US$0.9316 or US$1=C$1.0734.
The evening of positions ahead of the Bank of Canada’s latest policy statement later this week was also supportive for the loonie.
Some spillover buying also game from crude oil, though weakness in gold and copper values weighed on the Canadian currency, traders said.
Canadian bonds closed slightly higher amid quiet trade Monday, as traders were being cautious ahead of the Bank of Canada’s policy statement and US Federal Reserve meetings this week, brokers said.
The two-year bond yielded 1.098% late Friday, from 1.106% late Thursday. The 10-year bond yielded 2.211%, from 2.214%. Bond yields fall as their prices rise.
