By Commodity News Service Canada
WINNIPEG, August 11 – The Canadian dollar strengthened relative to the US dollar on Monday, seeing an upward correction following Friday’s sharp drop, analysts said.
The Canadian dollar closed at US$0.9158 or US$1=C$1.0919 on Monday, which compares with Friday’s North American settlement of US$0.9115 or US$1=C$1.0971.
Easing worries about geopolitical problems also caused traders to be more willing to take on risk, including the Canadian dollar.
Further support came from positive Canadian housing data. Housing starts in July were at an annualized rate of 200,098, up from 198,665 in June, Canada Mortgage and Housing Corp. said.
Strength in crude oil values was also bullish, though a downturn in gold prices was bearish for the Canadian currency, traders said.
Canadian bonds ended lower amid easing worries about political problems in Ukraine and Russia on Monday, participants said.
The two-year bond yielded 1.064% late Monday, from 1.060% late Friday. The 10-year bond yielded 2.075%, from 2.065%. Bond yields fall as their prices rise.
