By Commodity News Service Canada
WINNIPEG, June 30 – The Canadian dollar was slightly lower against the US dollar on Monday, reacting to disappointing Canadian economic data, analysts said.
According to Statistics Canada, Canadian gross domestic product (GDP) rose by 0.1 per cent in April, falling below expectations of a 0.2 per cent jump.
The Canadian dollar closed at US$0.9372 or US$1=C$1.0670 on Monday, which compares with Friday’s North American settlement of US$0.9380 or US$1=C$1.0661.
Some of the weakness was also linked to spillover pressure from the losses seen in crude oil prices, traders said. Though, gains in copper and gold were supportive.
The loonie’s downside was also limited by cautiousness ahead of tomorrow’s market closure, as July 1 marks the Canada Day holiday.
Canadian bonds closed higher on Monday, reacting to the disappointing Canadian GDP figures. Spillover support also came from the advances seen in the US Treasury market, brokers said.
The two-year bond yielded 1.104% late Monday, from 1.118% late Friday. The 10-year bond yielded 2.238%, from 2.250%. Bond yields fall as their prices rise.
