By Commodity News Service Canada
WINNIPEG, March 9 – The Canadian dollar closed firmer relative to the US dollar on Monday, seeing a slight correction after Friday’s sharp declines, analysts said.
The Canadian dollar closed at US$0.7939 or US$1=C$1.2596 on Monday, which compares with Friday’s North American settlement of US$0.7930 or US$1=C$1.2610.
Spillover support for the Canadian currency also came from the advances seen in commodities, including gold and crude oil, traders added.
However, disappointing Canadian housing data limited the upside. Canada Mortgage and Housing Corp. said housing starts dropped to 156,276 units in January, from 187,025 in December. Pre-report expectations called for a drop to 176,500 units.
Canadian bonds moved higher on Monday, finding support from the disappointing domestic housing starts data, market watchers said.
The two-year bond yielded 0.601% Monday, from 0.625% late Friday. The 10-year bond yielded 1.575%, from 1.611%. Bond yields rise as their prices fall.
