By Commodity News Service Canada
WINNIPEG, Nov. 3 – The Canadian dollar was down sharply compared to the US dollar, reacting to weak oil prices and disappointing economic data out of Asia and Europe, analysts said.
The Canadian dollar closed at US$0.8805 or US$1=C$1.1357 on Monday, which compares with Friday’s North American settlement of US$0.8872 or US$1=C$1.1271.
Dovish comments regarding the Canadian economy’s growth from the Bank of Canada’s governor Stephen Poloz on Monday added to the bearish tone. Poloz said the central bank will keep rates lower for longer if need be.
However, positive Canadian manufacturing data was somewhat supportive. Royal Bank’s manufacturing index was at 55.3 in October, which compares with 53.5 in September.
Canadian bonds closed mostly higher, outpacing the US Treasury market, reacting to the dovish comments from the Bank of Canada on Monday, traders said.
The two-year bond yielded 0.993% late Monday, from 1.024% late Friday. The 10-year bond yielded 2.043%, from 2.047%. Bond yields fall as their prices rise.
