By Commodity News Service Canada
WINNIPEG, Dec. 30 – The Canadian dollar firmed on Tuesday, with relative weakness in the US dollar helping to underpin the Canadian dollar.
Disappointing US consumer confidence data was supporting the Canadian dollar, analysts said. The Conference Board’s consumer-confidence index was at 92.6 in December, falling below expectations of 93.9.
The Canadian dollar closed at US$0.8615 or US$1=C$1.1607 on Tuesday, which compares with Monday’s North American settlement of US$0.8599 or US$1=C$1.1629.
A small rebound in oil prices and strength in gold were also pushing the Canadian currency higher on Tuesday, participants said.
Though, ongoing worries that the recent sharp declines in oil prices will weigh on the Canadian economy limited the upside.
Canadian bonds closed higher on Tuesday, with ongoing concerns about political and economic problems in Greece driving investors to safe-haven assets, brokers said.
The two-year bond yielded 1.018% late Tuesday, from 1.034% late Monday. The 10-year bond yielded 1.816%, from 1.835%. Bond yields fall as their prices rise.
