By Commodity News Service Canada
WINNIPEG, April 13 – The Canadian dollar ended lower relative to the US dollar on Monday, reacting to disappointing Chinese trade data, analysts said.
Reports say Chinese exports were down 14.6 per cent compared to the year prior in March, while pre-report expectations called for exports to rise 8.2 per cent.
The Canadian dollar closed at US$0.7942 or US$1=C$1.2592 on Friday, which compares with Thursday’s North American settlement of US$0.7949 or US$1=C$1.2580.
General strength in the US dollar index added to the bearish tone, as did weakness in gold prices.
However, renewed strength in crude oil prices helped to support the Canadian currency, as its one of the country’s biggest exports.
Canadian bonds ended steady to slightly higher on Monday, as traders were squaring positions ahead of the Bank of Canada’s next policy rate announcement on Wednesday, brokers said.
The two-year bond yielded 0.524% Monday, unchanged from late Friday. The 10-year bond yield was at 1.368%, from 1.374%. Bond yields fall as their prices rise.
