By Commodity News Service Canada
WINNIPEG, Jan. 23 – The Canadian dollar closed only slightly lower, after trading well below the 90 cents US mark for most of the day on Thursday.
The loonie’s decline was linked to disappointing Chinese manufacturing data, as well as Thursday’s dovish Bank of Canada policy announcement.
But, bargain hunting at the lows and positive Canadian economic data took limited the downside, analysts said. Statistics Canada reported that Canadian retail sales jumped 0.6% in November, beating expectations of a 0.2% increase.
Weakness in gold prices was bearish, while strong crude oil values were supportive for the Canadian dollar.
The Canadian currency closed at US$0.9010 or US$1=C$1.1099 on Thursday, which compares with Wednesday’s North American settlement of US$0.9019 or US$=C$1.1088.
Canadian bonds closed higher, following a rally seen in the US Treasury market after the release of disappointing Chinese manufacturing data, traders said.
The two-year bond yielded 0.975% late Thursday, from 1.008% late Wednesday. The 10-year bond yielded 2.410%, from 2.488%. Bond yields fall as their prices rise.
