By Commodity News Service Canada
WINNIPEG, May 8 – The Canadian dollar was up sharply against the US dollar on Thursday, breaking above the 92 cents US mark.
Positive Canadian housing data helped to lift the loonie on Thursday, analysts said. Housing starts were at an annualized rate of 195,000 in April, beating expectations of 175,000, according to Canada Mortgage and Housing Corp.
The Canadian dollar closed at US$0.9210 or US$1=C$1.0858 on Thursday, which compares with Wednesday’s North American settlement of US$0.9179 or US$1=C$1.0895.
Further support came from strong Australian employment data and positive Chinese economic reports, according to traders.
The firmer tone seen in gold and copper prices were also bullish, though weakness in crude oil limited the currency’s upside.
Canadian bonds closed little changed on Thursday, as traders were being cautious ahead of Friday morning’s Canadian employment data release, brokers said.
The two-year bond yielded 1.075% late Thursday, from 1.074% late Wednesday. The 10-year bond yielded 2.371%, from 2.379%. Bond yields fall as their prices rise.
