By Commodity News Service Canada
Winnipeg – May 27/13 – CNS – The Canadian dollar was trading
at a weaker level versus the US currency in late North American
activity on Monday. Activity in the currency was described as
extremely light given the closure of the US and UK financial
markets, industry watchers said.
The Canadian currency late in the afternoon was quoted at
C$1.0340 (96.73 US cents). This compares with Friday’s late
North American quote of C$1.0321 (96.89 US cents).
Some of the downswing in the value of the Canadian dollar
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said.
Some of the weakness in the Canadian unit was also
associated with nervousness ahead of Bank of Canada Governor Mark
Carney moving on to his new duties as head of the Bank of
England. Carney will make his final policy announcement on
Wednesday.
The Bank is expected to leave its overnight target rate at
1% and its policy stance mostly unchanged at the announcement.
Market participants are expected to scrutinize the Bank’s
policy statement closely for any indication of change in its
conditional tightening bias, but few expect it to alter the tone
of its policy guidance
There was no significant economic news released on Monday.
In Canada, quarter gross domestic production data for the
first quarter will be released on Friday.
Canadian bonds ended on a weaker footing Monday in thin,
directionless trading, with holidays in the US and UK depleting
trading flows.
Canada’s two-year bond yield was at 1.046% Monday, from
1.033% Friday. The 10-year bond yielded 1.990%, from 1.953%. Bond
yields move inversely to bond prices.
END
