By Commodity News Service Canada
WINNIPEG, April 9 – The Canadian dollar was softer relative to the US currency Thursday, as traders evened positions ahead of Friday’s Canadian employment data release, analysts said.
The Canadian dollar closed at US$0.7942 or US$1=C$1.2592 on Thursday, which compares with Wednesday’s North American settlement of US$0.7976 or US$1=C$1.2538.
Some of the weakness was linked to broad strength in the US dollar index and ongoing worries about slow economic growth in Canada.
Further downward pressure came from disappointing Canadian building permits data. Statistics Canada said building permits were worth C$6.1 billion in February, a 0.9 per cent drop from January.
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However, a rebound in crude oil prices provided some support for the loonie, as did positive domestic housing price data.
Canada’s new housing price index (NHPI) rose 0.2 per cent in February, from a 0.1 per cent drop in January, StatsCan said. Pre-report guesses called for a rise of only 0.1 per cent.
Canadian bonds ended sharply lower on Thursday, following the US Treasury market in reaction to a disappointing US government bond auction, brokers said.
The two-year bond yielded 0.513% Thursday, from 0.506% late Wednesday. The 10-year bond yield was at 1.371%, from 1.340%. Bond yields rise as their prices fall.
