By Commodity News Service Canada
WINNIPEG, June 2 – The Canadian dollar was stronger Tuesday, seeing an upward correction following Monday’s sharp drop against the US dollar, analysts said.
The Canadian dollar closed at US$0.8059 or US$1=C$1.2408 on Tuesday, which compares with Monday’s North American settlement of US$0.7978 or US$1=C$1.2535.
Spillover support for the Canadian dollar also came from the advances seen in crude oil and gold values.
News that Greece and its creditors reached a deal on terms for a bailout added to the bullish tone, as did the Bank of Australia’s decision to keep interest rates steady.
There were no significant Canadian economic data releases Tuesday. Traders were looking ahead to April international merchandise figures on Wednesday.
Canadian bonds were sharply lower, following the US Treasury market on Tuesday. Traders moved away from safe-haven assets as they became more optimistic about the Greek economic situation, brokers said.
The two-year bond yielded 0.588% Tuesday, from 0.569% late Monday. The 10-year bond yield was at 1.713%, from 1.636%. Bond yields fall as their prices rise.
