By Commodity News Service Canada
WINNIPEG, Dec. 16 – The Canadian dollar ended firmer relative to the US dollar Tuesday, seeing an upward correction following recent sharp declines, analysts said.
The Canadian dollar closed at US$0.8594 or US$1=C$1.1636 on Tuesday, which compares with Monday’s North American settlement of US$0.8579 or US$1=C$1.1656.
Positive Canadian trade data was also supportive. Foreign investors added C$9.5 billion worth of Canadian securities in October, Statistics Canada said.
A rebound in oil prices on Tuesday was also helping to underpin the Canadian currency. Though, recent weakness in the oil market was still worrying economists, as it’s likely to slow Canadian economic growth.
Statistics Canada also released manufacturing data Tuesday, though the Canadian currency showed little reaction to it, according to brokers. October manufacturing sales declined 0.6 per cent to C$52.7 billion.
Canadian bonds closed higher Tuesday, underpinned by the movement of money out of riskier assets into safe havens, market watchers said.
The two-year bond yielded 0.954% late Tuesday, from 0.976% late Monday. The 10-year bond yielded 1.752%, from 1.784%. Bond yields fall as their prices rise.
