By Commodity News Service Canada
WINNIPEG, March 12 – The Canadian dollar moved higher against the US dollar on Thursday, seeing an upward correction following recent sharp declines, analysts said.
The Canadian dollar closed at US$0.7872 or US$1=C$1.2703 on Thursday, which compares with Wednesday’s North American settlement of US$0.7836 or US$1=C$1.2761.
Further support came from disappointing US retail sales data, as it lowered expectations that the US Federal Reserve will raise interest rates in June.
However, downward pressure came from expectations that Canada’s employment data, to be released by Statistics Canada Friday morning, will be weak. Pre-report expectations call for a decline of 5,000 jobs in Canada last month.
Spillover selling from the weakness in crude oil, which was testing the US$47.00 per barrel level on Thursday, was also bearish.
Canadian bonds moved higher on Thursday, following the US Treasury market after the US government released disappointing retail sales data, brokers said.
The two-year bond yielded 0.576% Thursday, from 0.585% late Wednesday. The 10-year bond yielded 1.491%, from 1.499%. Bond yields rise as their prices fall.
