By Commodity News Service Canada
WINNIPEG, March 24 – The Canadian dollar was slightly firmer against the US dollar on Monday, recovering from a recent sharp drop, analysts said.
Ideas that last week’s declines were overdone and the market needed to correct higher were behind the upward move on Monday.
The Canadian dollar closed at US$0.8933 or US$1=C$1.1195 on Monday, which compares with Friday’s North American settlement of US$0.8921 or US$1=C$1.1210.
The upside in the Canadian dollar was limited by weak commodity prices and disappointing Chinese manufacturing data. The Chinese HSBC purchasing managers’ index dropped to 48.1 in March, from 48.5 in February, the lowest reading since July 2013.
Canadian bonds were mixed to higher Monday, taking some direction from similar action seen in the US Treasury market, brokers said.
The two-year bond yielded 1.075% late Monday, from 1.074% late Friday. The 10-year bond yielded 2.461%, from
2.488%. Bond yields fall as their prices rise.
