Canadian forex review: C$ climbs with crude oil

By Commodity News Service Canada

WINNIPEG, May 12 – The Canadian dollar was stronger against the US dollar Tuesday, finding support from strength in crude oil values. Crude oil was up more than 2 per cent, climbing above $60 per barrel.

The Canadian dollar closed at US$0.8321 or US$1=C$1.2018 on Tuesday, which compares with Monday’s North American settlement of US$0.8258 or US$1=C$1.2110.

Further support came from general weakness in the US dollar index and a rally in other commodities, including gold, analysts said.

Though, ongoing expectations that the US Federal Reserve will raise interest rates later this year continued to overhang the Canadian dollar.

Canadian building data released Tuesday had little impact on the loonie, with traders looking ahead to Wednesday morning’s April US retail sales report.

Canadian bonds were up slightly Tuesday, following the gains seen in the US Treasury market, according to brokers.

The two-year bond yielded 0.698% late Tuesday, from 0.707% late Monday. The 10-year bond yield was at 1.807%, from 1.824%. Bond yields fall as their prices rise.