By Commodity News Service Canada
Winnipeg – April 19/13 – CNS – The Canadian dollar was
trading at a level that was little changed versus the US currency
in late North American activity on Friday. Some minor investor
interest sparked by the advances in global crude oil and gold
values helped to generate some strength for the Canadian unit,
market watchers said.
Gains in the North American equity sector also were
supportive for the value of the Canadian dollar.
The Canadian currency late in the afternoon was quoted at
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North American quote of C$1.0260 (97.47 US cents).
The Canadian dollar showed little reaction to news in early
trading that Canada’s core inflation rate was at 1.4% on a
year-over-year basis in February, well below the Bank of Canada’s
medium-term inflation target of 2%, while the headline index rose
by 1.0%.
With the recent trend of soft Canadian data and the Bank of
Canada’s stand-pat policy position, the Canadian currency could
come under more pressure in coming sessions, analysts noted.
The next significant Canadian data release comes Tuesday,
when retail sales for February will be released.
Canadian bonds ended lower along the yield curve on
and squared positions up ahead of the weekend, market watchers
said.
Canada’s two-year bond yield was at 0.940% late Friday, from
0.939% late Thursday. The 10-year bond yield was at 1.710%, from
1.705%. Bond yields move inversely to bond prices.
The Canadian market absorbed as-expected March inflation
data with little noticeable reaction Friday morning, as the
overall soft tone of the data was not expected to have any impact
on the mild tightening bias the Bank of Canada reiterated in its
policy statement and report on Wednesday.
END
