By Commodity News Service Canada
WINNIPEG, Oct. 16 – The Canadian dollar was slightly firmer relative to the US dollar on Thursday, continuing to find support from Wednesday’s disappointing US retail sales data, analysts said.
The Canadian dollar closed at US$0.8890 or US$1=C$1.1248 on Thursday, which compares with Wednesday’s North American settlement of US$0.8883 or US$1=C$1.1258.
Some spillover support also came from sharp advances seen in crude oil values on Thursday, though weakness in gold was bearish for the Canadian dollar.
Disappointing Canadian manufacturing data also weighed on the loonie. Statistics Canada said Canadian manufacturing sales dropped 3.3 per cent, to C$52.1 billion in August, the first decline of 2014.
Canadian bonds were lower on Thursday, seeing a downward correction after the rally seen earlier in the week, market watchers said.
The two-year bond yielded 0.925% late Thursday, from 0.914% late Wednesday. The 10-year bond yielded 1.932%, from 1.916%. Bond yields fall as their prices rise.
