By Commodity News Service Canada
WINNIPEG, May 20 – The Canadian dollar eased against the US dollar on Tuesday, undermined by disappointing Canadian wholesale sales data, analysts said.
According to Statistics Canada, wholesale sales decreased by 0.4 per cent to C$50.5 billion in March 2014, following advances seen in both January and February 2014. Pre-report expectations called for a 0.4 per jump in March.
The Canadian dollar closed at US$0.9175 or US$1=C$1.0899 on Tuesday, which compares with Friday’s North American settlement of US$0.9211 or US$1=C$1.0857. Canadian markets were closed for Victoria Day on Monday.
Some of the weakness was also linked to the softer tone in crude oil and copper prices, though strength in gold was supportive.
Canadian bonds closed mixed, following the same prices action seen in US Treasurys amid a lack of fresh market moving news, brokers said.
The two-year bond yielded 1.040% late Tuesday, from 1.039% late Friday. The 10-year bond yielded 2.274%, from 2.265%. Bond yields fall as their prices rise.
