By Commodity News Service Canada
WINNIPEG, January 30 – The Canadian dollar closed stronger on Wednesday, consolidating following recent declines, analysts said.
The Canadian currency was quoted at US$0.9985, or US$1=C$1.0015 at the close on Wednesday, which compares with Tuesday’s North American close of US$0.9976, or US$=C$1.0024.
Strong commodity prices, including crude oil, gold and copper, also helped to push the Canadian dollar to higher ground.
Some downward pressure was put on the dollar by soft US inflation data. US gross domestic product (GDP) fell 0.1% in the last quarter of 2012, the worst performances since the second quarter of 2009.
There was no significant Canadian economic data to report on Wednesday. Traders were looking ahead to Thursday’s GDP report from Statistics Canada.
Canadian bonds moved slightly lower Wednesday, as the US Federal Reserve kept its stimulus plan nearly unchanged.
The two-year bond yielded 1.165% late Wednesday, unchanged from late Tuesday. The 10-year bond yielded 1.999%, from 1.997% Tuesday. Bond yields fall as their prices rise.
