By Commodity News Service Canada
WINNIPEG, April 14 – The Canadian dollar ended higher against its US counterpart Tuesday, finding support from disappointing US retail sales data, analysts said.
The US dollar index softened after data showed March retail sales were up 0.9 per cent last month, while a 1.1 per cent jump was anticipated.
The Canadian dollar closed at US$0.8006 or US$1=C$1.2490 on Tuesday, which compares with Monday’s North American settlement of US$0.7949 or US$1=C$1.2592.
Further support for the Canadian dollar came from strength in crude oil values, though weakness in gold was bearish.
There was no significant Canadian economic data moving the market Tuesday. Traders were waiting for the Bank of Canada’s next interest rate announcement on Wednesday.
Canadian bonds ended sharply higher on Tuesday, following the US Treasury market’s gains. Both markets were underpinned by the disappointing US retail sales data, brokers said.
The two-year bond yielded 0.509% Tuesday, from late 0.520% Monday. The 10-year bond yield was at 1.315%, from 1.355%. Bond yields fall as their prices rise.
