By Commodity News Service Canada
WINNIPEG, May 6 – The Canadian dollar was sharply stronger relative to the US dollar on Tuesday, lifted by positive Canadian trade data, analysts said.
Statistics Canada revised Canadian trade data for February, upping the surplus to $847 million, from a previous report pegging the surplus at $290 million. In March, the trade surplus was $79 million, StatsCan said.
The Canadian dollar closed at US$0.9192 or US$1=C$1.0879 on Tuesday, which compares with Monday’s North American settlement of US$0.9131 or US$1=C$1.0952.
Broad weakness in the value of the US dollar was also bullish for the Canadian dollar, as was the firmer tone seen in crude oil prices. But, weakness in gold values was bearish.
Canadian bonds closed narrowly mixed, following the same action seen in the US Treasury market on Tuesday, participants said.
The two-year bond yielded 1.072% late Tuesday, from 1.071% late Monday. The 10-year bond yielded 2.373%, from 2.370%. Bond yields fall as their prices rise.
