By Commodity News Service Canada
WINNIPEG, June 25 – The Canadian dollar finished weaker compared to its US counterpart on Tuesday, amid consolidation trading following recent sharp declines.
The Canadian currency was quoted at US$0.9516, or US$1=C$1.0509 at the close on Tuesday, which compares with Monday’s North American close of US$0.9537, or US$=C$1.0486.
Recent positive economic data from the US, which made it more likely that the US Federal Reserve will go ahead with its plan to reduce stimulus before the end of the year, was bearish for the Canadian dollar.
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Losses seen in gold prices put further downward pressure on the value of the Canadian dollar. However, spill over support from the advances seen in crude oil, copper and North American equity markets limited its downside potential.
There was no significant Canadian economic data moving the loonie on Tuesday. Traders were looking ahead to Thursday and Friday, when Statistics Canada will release employment and gross domestic product data.
Canadian bonds were lower Tuesday, as North American equity markets strengthened. The weakening US Treasury market was also said to be influencing Canadian bonds.
The two-year bond yielded 1.251% late Tuesday, from 1.245% late Monday. The 10-year bond yielded 2.531%, from 2.486%. Bond yields fall as their prices rise.
