By Commodity News Service Canada
WINNIPEG, Jan. 19 – The Canadian dollar was slightly stronger relative to the US dollar on Monday, amid a quiet day as US markets were closed for Martin Luther King, Jr. Day.
The Canadian dollar closed at US$0.8370 or US$1=C$1.1947 on Friday, which compares with Friday’s North American settlement of US$0.8356 or US$1=C$1.1968.
Spillover support came from the advances seen in commodities, including crude oil and gold values, market watchers said.
However, expectations that the Bank of Canada will release a dovish statement during their policy rate announcement later this week limited the upside. The bank is expected to keep interest rates unchanged.
Speculation that the US Federal Reserve will raise interest rates before Canada does continued to overhang the Canadian dollar.
Canadian bonds closed higher on Monday, with ongoing worries about weak oil prices hurting Canada’s economy providing support, brokers said.
The two-year bond yielded 0.857% late Monday, from 0.874% late Friday. The 10-year bond yielded 1.513%, from 1.533%. Bond yields fall as their prices rise.