By Commodity News Service Canada
Winnipeg – April 10/13 – CNS – The Canadian dollar was
trading at a firmer level versus the US currency in late North
American activity on Wednesday. Much of the upswing in the value
of the Canadian dollar came amid an increased willingness among
investors to take on risk, market watchers said.
Favourable Chinese trade data also influenced some of the
demand for the Canadian currency.
The Canadian currency late in the afternoon was quoted at
C$1.0141 (98.60 US cents). This compares with Tuesday’s late
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According to customs data, China’s trade deficit narrowed to
US$800 million in March, while imports were up 14,1% during the
month.
Some of the strength in the Canadian unit was also
attributed to the advances seen in global crude oil and the North
American equity sector, brokers said.
The Bank of Canada’s third policy statement and second
monetary policy report of the year are scheduled for next
Wednesday.
Canada’s new housing price index for February will be
released Thursday morning.
Canadian bonds ended lower along the yield curve on
Wednesday as selling picked up steam after a equity rally in late
afternoon trading, market watchers said.
Canada’s two-year bond yield was at 0.998% Wednesday, from
0.995% last Tuesday. The 10-year bond yielded 1.813%, from
1.771%. Bond yields move inversely to bond prices.
Bond markets took the early release of minutes from the last
Federal Open Market Committee meeting in stride early Wednesday,
and shifted their attention to auctions on both sides of the
border.
The minutes revealed most Fed officials wanted to keep the
Fed’s accommodative monetary policy in place “at least through
midyear.”
The Bank of Canada sold 2.70 billion Canadian dollars ($2.66
billion) worth of three-year bonds at an average yield of 1.155%,
with a bid-to-cover ratio of 2.77.
END
