By Commodity News Service Canada
WINNIPEG, Nov. 24 – The Canadian dollar dropped relative to the US currency on Monday, seeing a downward correction following Friday’s rally, which was linked to positive Canadian inflation data, analysts said.
The Canadian dollar closed at US$0.8858 or US$1=C$1.1289 on Monday, which compares with Friday’s North American settlement of US$0.8898 or US$1=C$1.1239.
Weakness in commodities, including large losses in crude oil values, was also weighing on the Canadian dollar on Monday.
The liquidation of positions ahead of some key economic data later this week was bearish as well. Statistics Canada releases September gross domestic product figures on Friday, while US GDP data is due out on Tuesday.
Canadian bonds closed higher on Monday, reversing the declines seen on Friday and outpacing the US Treasury market, brokers said.
The two-year bond yielded 1.058% late Monday, from 1.065% late Friday. The 10-year bond yielded 1.978%, from 2.007%. Bond yields fall as their prices rise.
