By Commodity News Service Canada
WINNIPEG, May 16 – The Canadian dollar was stronger relative to the US dollar on Friday, breaking above the 92 cents US mark.
Some of the activity was linked to position squaring ahead of the long weekend, as Canadian markets will be close Monday, May 19, for Victoria Day. US markets will be open.
The Canadian dollar closed at US$0.9211 or US$1=C$1.0857 on Friday, which compares with Thursday’s North American settlement of US$0.9194 or US$1=C$1.0877.
The Canadian dollar was also reacting to better than expected US housing data. Reports showed that US housing starts were at an annualized pace of 1.072 million units in April, while expectations called for 980,000.
Strength seen in crude oil prices was bullish for the Canadian dollar, though a weaker tone in gold values limited the upside.
Canadian bonds closed slightly lower on Friday, seeing a slight correction following recent advances and ahead of the long weekend, brokers said.
The two-year bond yielded 1.039% late Friday, from 1.038% late Thursday. The 10-year bond yielded 2.264%, from 2.258%. Bond yields fall as their prices rise.
