Canadian forex review: C$ closes slightly weaker

By Commodity News Service Canada

WINNIPEG, April 22 – The Canadian dollar closed slightly weaker relative to the US dollar on Tuesday.

Better than expected US economic data was behind the softness in the loonie, said analysts. US government data showed that existing home sales dropped 0.2 per cent to an annual rate of 4.59 million in March, beating expectations of 4.55 million.

The Canadian dollar closed at US$0.9068 or US$1=C$1.1028 on Tuesday, which compares with Monday’s North American settlement of US$0.9079 or US$1=C$1.1015.

Spillover pressure from the declines seen in commodity prices, including crude oil and gold, was also bearish.

But, the Canadian currency’s downside was limited by positive Canadian wholesale sales data. Statistics Canada said wholesale sales jumped 1.1 per cent in February.

Canadian bonds were little changed amid a lack of fresh news. Some downward pressure came from the weakness seen in US Treasurys, brokers said.

The two-year bond yielded 1.072% late Tuesday, from 1.075% late Monday. The 10-year bond yielded 2.449%, unchanged from Monday. Bond yields fall as their prices rise.