By Commodity News Service Canada
WINNIPEG, June 26 – The Canadian dollar ended sharply stronger, gaining about a quarter of a cent against the US dollar on Thursday.
Technical based buying after the currency broke above a key resistance level accounted for the sharp advance on Thursday, analysts said.
The Canadian dollar closed at US$0.9352 or US$1=C$1.0693 on Thursday, which compares with Wednesday’s North American settlement of US$0.9327 or US$1=C$1.0722.
Disappointing US economic data also helped to lift the Canadian dollar. According to the US Commerce Department, consumer spending increased by 0.2 per cent in May, while expectations called for a 0.4 per cent jump.
However, a drop in commodity prices, including crude oil and gold, helped to temper the Canadian currency’s upside potential.
Canadian bonds closed higher on Thursday, following the gains seen in the US Treasury market after the release of disappointing US consumer spending data, traders said.
The two-year bond yielded 1.109% late Thursday, from 1.117% late Wednesday. The 10-year bond yielded 2.238%, from 2.271%. Bond yields fall as their prices rise.
