Canadian forex review: C$ firms slightly

By Commodity News Service Canada

WINNIPEG, May 5 – The Canadian dollar ended slightly firmer against the US dollar on Tuesday, lifted by strength in crude oil values, analysts said.

The Canadian dollar closed at US$0.8284 or US$1=C$1.2072 on Tuesday, which compares with Monday’s North American settlement of US$0.8270 or US$1=C$1.2092.

Further support came from disappointing US trade data, as it reduced the chance of an interest rate increase from the US Federal Reserve.

Though, the upside was limited by cautiousness ahead of upcoming Canadian and US labour figures on Friday, as they will help create a clearer picture of how both economies are doing.

Canadian bonds ended mixed after a day of choppy activity on Tuesday. Weakness in US Treasurys was cited as a bearish influence, according to brokers.

The two-year bond yielded 0.690% late Tuesday, from 0.710% late Monday. The 10-year bond yield was at 1.732%, from 1.715%. Bond yields fall as their prices rise.