By Commodity News Service Canada
Winnipeg, April 22 – The Canadian dollar chalked up solid gains on Wednesday as new economic data painted a more optimistic picture for the country’s economic future.
At 3:58 CDT Wednesday, the loonie was at US$0.8172 or US$1 = C$1.2236 as Japanese trade data mixed with hawkish statements from the Bank of England.
The US dollar stumbled early in the session after investors backed away from the American greenback following Japan’s announcement it had a trade surplus.
The US dollar also appeared unnerved by the Bank of England’s statements regarding the European recovery. The bank said while some disinflationary pressure did remain, the tone was looking more upbeat.
Canadian bonds ended lower in subdued trading, said analysts. Canada’s two-year bond yield was at 0.670% per cent, in comparison with 0.646 per cent on Tuesday. The 10-year bond yielded 1.502 per cent from 1.448 per cent.
Canada’s bond market outperformed US Treasurys for the day.
