By Commodity News Service Canada
WINNIPEG, March 31 – The Canadian dollar was up against the US dollar Tuesday, seeing an upward correction following Monday’s sharp decline, analysts said.
The Canadian dollar closed at US$0.7895 or US$1=C$1.2666 on Tuesday, which compares with Monday’s North American settlement of US$0.7878 or US$1=C$1.2693.
Slightly better than expected Canadian gross domestic product (GDP) data was also supportive. GDP fell 0.1 per cent in January, Statistics Canada said, slightly better than expectations calling for a 0.2 per cent drop.
However, weakness in commodity prices, including crude oil and gold, spilled over to undermine the loonie, limiting its upside.
Canadian bonds ended mostly higher Tuesday, taking direction from the US Treasury market. Though, the positive Canadian GDP data was bearish, brokers added.
The two-year bond yielded 0.508% Tuesday, unchanged from late Monday. The 10-year bond yielded 1.371%, from 1.375%. Bond yields rise as their prices fall.
