By Commodity News Service Canada
WINNIPEG, July 18 – The Canadian dollar firmed against its US counterpart on Thursday, seeing a correction from Wednesday’s decline, analysts said.
The Canadian currency was quoted at US$0.9638, or US$1=C$1.0376 at the close on Thursday, which compares with Wednesday’s North American close of US$0.9602, or US$=C$1.0414.
Strength seen in commodity prices, including crude oil, gold and copper, helped to lift the value of the Canadian dollar.
Strong Canadian wholesale sales data added to the bullish tone. According to Statistics Canada, wholesale sales rose 2.3% in May, beating expectations of a 0.3% increase.
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StatsCan also released positive employment insurance data on Thursday. The number of people regularly claiming employment insurance benefits fell by 2.4% in May, the government agency said.
Further support came from positive US manufacturing data. The Philadelphia Fed’s manufacturing survey rose to 19.8 in July, from 12.5 in June.
Canadian bonds closed lower, with strong US economic data responsible for the selling, market watchers said.
The two-year bond yielded 1.094% late Thursday, from 1.091% late Wednesday. The 10-year bond yielded 2.394%, from 2.374%. Bond yields fall as their prices rise.
