By Commodity News Service Canada
WINNIPEG, July 15 – The Canadian dollar eased against its US counterpart on Monday amid lower than expected US retail sales data, traders said.
According to the US government, US retail sales rose 0.4% in June, which was lower than the expected gain of about 0.8%.
The Canadian currency was quoted at US$0.9602, or US$1=C$1.0415 at the close on Monday, which compares with Friday’s North American close of US$0.9619, or US$=C$1.0396.
Signs that Chinese economic growth is slowing down sparked some selling of the Canadian dollar, as they pressured commodity prices.
However, strong Canadian housing data limited the Canadian dollar’s downside potential. According to the Canadian Real Estate Association, home sales increased 3.3% in June compared to May. The average home price increased 4.8% in June 2013, from June 2012.
Canadian bonds closed slightly higher on Monday amid disappointing US retail sales data, analysts said.
The two-year bond yielded 1.135% late Monday, from 1.138% late Friday. The 10-year bond yielded 2.418%, from 2.433%. Bond yields fall as their prices rise.
