By Commodity News Service Canada
WINNIPEG, September 29 – The Canadian dollar held steady relative to the U.S. dollar on Monday, as the currency was attempting to consolidate following recent sharp declines, analysts said.
The Canadian dollar closed at U.S.$0.8966 or U.S.$1=C$1.1153 on Monday, which compares with Friday’s North American settlement of U.S.$0.8965 or U.S.$1=C$1.1155.
A lack of fresh market moving news on Monday also kept the Canadian dollar in a narrow trading range. Traders were looking ahead to Tuesday’s Canadian gross domestic product data and employment figures from the U.S. on Friday.
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Ongoing expectations that the U.S. Federal Reserve will raise interest rates before the Bank of Canada remained bearish for the Canadian currency.
On the other side, ideas that the Canadian dollar dropped too far, too fast was supportive, as was spillover from the gains seen in crude oil and gold.
Canadian bonds ended higher on Monday, as global economic worries sparked more interest in safe-haven assets, market watchers said.
The two-year bond yielded 1.119% late Monday, from 1.135% late Friday. The 10-year bond yielded 2.131%, from 2.165%. Bond yields fall as their prices rise.
