By Commodity News Service Canada
WINNIPEG, Feb. 9 – The Canadian dollar closed firmer on Monday, following the strength seen in crude oil values, analysts said.
The Canadian dollar closed at US$0.8022 or US$1=C$1.2465 on Monday, which compares with Friday’s North American settlement of US$0.7985 or US$1=C$1.2524.
General weakness in the US dollar and positive Canadian housing starts data were also bullish. Canada Mortgage and Housing Corp. said housing starts were at 187,276 units in January, up from 179,637 units in December. Pre-report expectations called for an annualized rate of 178,000 units last month.
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However, the upside was limited by ongoing worries about slow global economic growth, due to political problems in parts of Europe and soft trade data from China.
Chinese imports fell 19.7 per cent last month, compared to a year ago. Exports were down 3.2 per cent year-on-year, following a 9.7 per cent rise in December, data showed.
Canadian bonds ended stronger on Monday, underpinned by concerns about economic problems in Europe and China, brokers said.
The two-year bond yielded 0.479% Monday, from 0.500% late Friday. The 10-year bond yielded 1.414%, from 1.452%. Bond yields fall as their prices rise.
