By Commodity News Service Canada
WINNIPEG, June 11 – The Canadian dollar closed slightly weaker relative to the US dollar on Thursday, reacting to positive US Retail sales data, analysts said.
Retail sales in the US were up 1.2 per cent, which reinforced ideas that the US Federal Reserve will raise interest rates later this year.
The Canadian dollar closed at US$0.8147 or US$1=C$1.2275 on Thursday, which compares with Wednesday’s North American settlement of US$0.8155 or US$1=C$1.2262.
Further downward pressure came from softening commodity prices, including crude oil and gold.
Though, jobless claims data in the US was disappointing, which limited the downside, as did oversold sentiment.
Housing data in Canada was released Thursday, and was in line with expectations. The New Housing Price Index rose 0.1 per cent in April, following no change in March, Statistics Canada said.
Canadian bonds were up sharply on Thursday, lifted by worries about economic problems in Greece, according to market watchers.
The two-year bond yielded 0.661% Thursday, from 0.701% late Wednesday. The 10-year bond yield was at 1.819%, from 1.904% Bond yields fall as their prices rise.
