By Commodity News Service Canada
Winnipeg, June 27 – The Canadian dollar moved slightly higher against
its US counterpart on Thursday, underpinned by strong economic reports and
mixed commodity prices, analysts said.
According to market watchers, slower-than-expected growth raised hopes
that the US Federal Reserve will be in no hurry to cut down on its US$85
billion of bond purchases each month.
Additional support came from economists who believe the Canadian economy
grew 0.1 percent month over month and at an annualized rate of 1.4 percent.
The official reading on Canada’s economic growth will be released Friday
morning.
The Canadian currency late in the afternoon was quoted at C$0.9547
(US$1.0475). This compares with Wednesday’s late North American quote of
C$0.9543 (US$1.0479).
Canadian bonds were higher along with US Treasurys Thursday, as fixed-
income markets extended their recovery from recent losses, brokers said.
Canada’s two-year bond yield is at 1.201% Thursday, from 1.228%
Wednesday, according to electronic trading platform CanDeal. The 10-year bond
yielded 2.418%, from 2.501%.
