Canadian forex review: C$ strengthens

By Commodity News Service Canada

WINNIPEG, Feb. 13 – The Canadian dollar strengthened against the US dollar on Thursday, lifted by disappointing US retail sales data, analysts said.

The US government reported retail sales declined by 0.4 per cent in January, while expectations called for a 0.3 per cent drop.

The Canadian dollar closed at US$0.9110 or US$1=C$1.0977 on Thursday, which compares with Wednesday’s North American settlement of US$0.9093 or US$=C$1.0997.

Spillover support also came from the gains seen in gold prices. Though, weakness in crude oil limited the loonie’s upside.

Traders were looking ahead to Friday’s Canadian manufacturing data which will be released by Statistics Canada.

Canadian bonds were higher, following the rally seen in the US Treasury market, industry watchers said.

The two-year bond yielded 1.020% late Thursday, from 1.036% late Wednesday. The 10-year bond yielded 2.456%, from 2.487%. Bond yields fall as their prices rise.