By Commodity News Service Canada
WINNIPEG, April 1 – The Canadian dollar was firmer relative to the US dollar on Wednesday, finding some spillover support from the gains seen in crude oil values, analysts said.
The Canadian dollar closed at US$0.7920 or US$1=C$1.2626 on Wednesday, which compares with Tuesday’s North American settlement of US$0.7895 or US$1=C$1.2666.
Weakness in the US dollar index, after some disappointing US employment data was released, also supported the Canadian dollar. The ADP private-sector employment report said the US economy added 189,000 jobs in March, while pre-report expectations called for 225,000 new jobs.
Though, ongoing worries about slow economic growth in Canada, due to oil’s recent price slump, were limiting the upside.
Canadian bonds ended higher on Wednesday, following the US Treasury market’s reaction to disappointing private sector employment data, brokers said.
The two-year bond yielded 0.489% Wednesday, from 0.507% late Tuesday. The 10-year bond yielded 1.330%, from 1.360%. Bond yields rise as their prices fall.
