By Commodity News Service Canada
WINNIPEG, Nov. 18 – The Canadian dollar ended little changed relative to the US dollar on Tuesday, as traders moved to the sidelines ahead of a key US Senate vote Tuesday night, analysts said.
The US Senate will vote on the TransCanada Keystone XL Pipeline project later Tuesday, and the outcome could provide direction for the Canadian currency.
The Canadian dollar closed at US$0.8850 or US$1=C$1.1299 on Tuesday, which compares with Monday’s North American settlement of US$0.8853 or US$1=C$1.1296.
Positive economic data out of Europe, and news that Germany saw some economic growth in the third quarter after contracting in the second quarter, were also supportive.
However, weakness in commodity prices, including crude oil and metals, was bearish, brokers said.
Canadian bonds closed higher, as investors were flocking to safe-haven assets after the attack on a Jerusalem synagogue, market watchers said.
The two-year bond yielded 1.004% late Tuesday, from 1.006% late Monday. The 10-year bond yielded 1.998%, from 2.022%. Bond yields fall as their prices rise.
