By Commodity News Service Canada
Winnipeg – March 13/13 – CNS – The Canadian dollar was
trading at a weaker level versus the US currency in late North
American activity on Wednesday. Much of the downswing in the alue
of the Canadian currency came as investors sought out the US
dollar, market watchers said.
Some of tha selling of the Canadian unit in favour of the US
dollar was linked to the continued dovish tone from the Bank of
Canada and recent weak economic data.
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The Canadian currency late in the afternoon was quoted at
C$1.0277 (97.30 US cents). This compares with Tuesday’s late
North American quote of C$1.0261 (97.46 US cents).
Weakness in global crude oil values Wednesday also were
linked to the downswing in the Canadian dollar.
Some early strength in the Canadian dollar was derived from
encouraging retail sales data in the US.
No economic data of any significance was reported on
Wednesday. Market participants were looking ahead to Friday’s
Canadian housing data.
Canadian bond issues were generally lower along the yield
curve on Wednesday as global investors continued their pursuit of
more risk-sensitive assets at the expense of government bonds,
market watchers said.
The North American bond sector was also pressured by some
Canada’s two-year bond yield was at 0.977% Wednesday, from
0.962% late Tuesday. The 10-year bond yielded 1.921%, from
1.909%. Bond yields and bond prices move in opposite directions.
US retail sales were encouraging in February, with the 1.1%
expansion nearly doubling the consensus view. The figures suggest
a more positive contribution to first-quarter gross domestic
product growth, analysts said.
END
