By Commodity News Service Canada
WINNIPEG, July 16 – The Canadian dollar eased further against the US dollar on Thursday, continuing to react to Wednesday’s Bank of Canada interest rate cut.
The Canadian dollar closed at US$0.7710 or US$1=C$1.2970 on Thursday, which compares with Wednesday’s North American settlement of US$0.7740 or US$1=C$1.2920.
The decline was also linked to spillover pressure from the weaker crude oil market.
Technical based selling added to the bearish tone, though the Canadian currency was nearing technical support levels against the US dollar, analysts noted.
However, sentiment that this week’s sharp declines are looking overdone helped to limit the downside, market watchers said.
Canadian bonds were mixed Thursday, consolidating after moving sharply higher in reaction to the Canadian interest rate cut on Wednesday, brokers said.
The two-year bond yielded 0.412% on Thursday, from 0.401% on Wednesday. The ten-year bond yield was at 1.567%, from 1.592%. Bond yields fall as their prices rise.
