By Commodity News Service Canada
WINNIPEG, Oct. 27 – The Canadian dollar was slightly lower relative to the US dollar on Monday, undermined by spillover pressure from the weakness in crude oil, analysts said.
The Canadian dollar closed at US$0.8898 or US$1=C$1.1238 on Monday, which compares with Friday’s North American settlement of US$0.8902 or US$1=C$1.1233.
Disappointing economic news out of Germany was also bearish. The Ifo institute released their latest confidence index, which dropped to 103.2 points in October, from 104.7 last month.
Traders were being cautious as they awaited fresh economic news out of the US and Canada. Wednesday marks the US Federal Reserve’s next interest rate announcement, while Statistics Canada releases its latest gross domestic product report on Friday.
Canadian bonds were little changed on Monday, as the trade was awaiting fresh market moving news before making any big moves, brokers said.
The two-year bond yielded 1.000% late Monday, from 1.003% late Friday. The 10-year bond yielded 2.013%, from 2.011%. Bond yields fall as their prices rise.
