By Commodity News Service Canada
WINNIPEG, June 26 – The Canadian dollar finished stronger against its US counterpart on Wednesday, with news that the US government revised first quarter growth domestic product data lower providing support for the loonie, analysts said.
According to the US government, US gross domestic product expanded at a 1.8 per cent annual rate in the first quarter of 2013, a downward revision from the previous estimate of 2.4 per cent growth.
The Canadian currency was quoted at US$0.9543, or US$1=C$1.0479 at the close on Wednesday, which compares with Tuesday’s North American close of US$0.9516, or US$=C$1.0509.
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An announcement from the European Central Bank, noting that they are not planning on reducing monetary stimulus programs any time soon, provided additional support for the Canadian dollar.
However, weakness in commodities helped to limit the commodity sensitive Canadian dollar’s upside potential.
There was no significant Canadian economic data to report on Wednesday. Traders were looking ahead to employment data and gross domestic product figures on Thursday and Friday, respectively.
Canadian bonds finished higher, following the same action seen in US Treasurys, analysts said.
The two-year bond yielded 1.227% late Wednesday, from 1.259% late Tuesday. The 10-year bond yielded 2.501%, from 2.537%. Bond yields fall as their prices rise.
