By Commodity News Service Canada
WINNIPEG, May 13 – The Canadian dollar was higher relative to its US counterpart on Wednesday, finding support from disappointing US retail sales data.
The US Commerce Department said retail sales were unchanged last month, while expectations called for a 0.2 or 0.3 per cent jump.
The Canadian dollar closed at US$0.8356 or US$1=C$1.1967 on Wednesday, which compares with Tuesday’s North American settlement of US$0.8321 or US$1=C$1.2018.
Strength in commodity prices, including gold, also helped to underpin the Canadian currency. Though, oil values saw some late day weakness, which tempered the loonie’s upside, analysts said.
There was no significant Canadian economic data reported Wednesday. On Thursday, the New Housing Price Index report will be released, followed by monthly manufacturing figures on Friday.
Canadian bonds were steady to weaker Wednesday, seeing some technical-based selling after initially moving higher in reaction to soft US retail sales data, traders said.
The two-year bond yielded 0.693% late Wednesday, unchanged from late Tuesday. The 10-year bond yield was at 1.822%, from 1.798%. Bond yields fall as their prices rise.
