By Commodity News Service Canada
WINNIPEG, Jan. 27 – The Canadian dollar moved higher relative to the US dollar on Tuesday, seeing an upward correction after many days of huge losses, analysts said.
The Canadian dollar closed at US$0.8062 or US$1=C$1.2404 on Tuesday, which compares with Monday’s North American settlement of US$0.8023 or US$1=C$1.2464.
Spillover support also came from the advances seen in commodity prices, including crude oil and gold, market watchers added.
However, ongoing worries about slow global economic growth and cautiousness ahead of the US Federal Reserve’s interest rate announcement on Wednesday. Traders believe the US Federal Reserve may hint at raising interest rates.
Canadian bonds ended sharply higher on Tuesday, reacting to soft durable goods orders data out of the US, according to brokers.
The two-year bond yielded 0.489% late Tuesday, from 0.520% late Monday. The 10-year bond yielded 1.417%, from 1.467%. Bond yields fall as their prices rise.
