By Commodity News Service Canada
WINNIPEG, May 29 – The Canadian dollar ended firmer relative to the US dollar on Thursday, lifted by positive Canadian economic data, analysts said.
According to Statistics Canada, Canada’s current international payments account deficit (on a seasonally adjusted basis) narrowed by C$3.3 billion to C$12.4 billion in the first quarter of 2014. This marks the slimmest deficit since the fourth quarter of 2011.
The Canadian dollar closed at US$0.9228 or US$1=C$1.0836 on Thursday, which compares with Wednesday’s North American settlement of US$0.9195 or US$1=C$1.0875.
Short covering, broad weakness in the value of the US dollar and strength in crude oil prices also underpinned the Canadian dollar.
However, weakness in gold and copper tempered the upside, brokers said.
Canadian bonds moved lower on Thursday, reacting to profit taking following recent sharp advances, industry watchers said.
The two-year bond yielded 1.046% late Thursday, from 1.037% late Wednesday. The 10-year bond yielded 2.248%, from 2.223%. Bond yields fall as their prices rise.
