By Commodity News Service Canada
WINNIPEG, Dec. 1 – The Canadian dollar moved sharply higher against the US dollar on Monday, seeing an upward correction following last week’s sharp decline, analysts said.
The Canadian dollar closed at US$0.8828 or US$1=C$1.1328 on Monday, which compares with Friday’s North American settlement of US$0.8741 or US$1=C$1.1440.
A rebound in crude oil prices was also lifting the Canadian currency, as was strength in gold values on Monday, brokers added.
Positive manufacturing news out of Canada was supportive as well. The RBC Canadian PMI was holding steady at 55.3 in November, which was a 12-month high.
However, disappointing Chinese economic data limited the loonie’s upside. HSBC’s purchasing managers’ index declined to 50.0 in November, from 50.4 in October, according to reports.
Canadian bonds closed mostly lower on Monday, undermined by profit taking following last week’s sharp advances, market watchers said.
The two-year bond yielded 0.988% late Monday, unchanged from late Friday. The 10-year bond yielded 1.888%, from 1.848%. Bond yields fall as their prices rise.
