By Commodity News Service Canada
WINNIPEG, April 2 – The Canadian dollar was stronger relative to the US dollar on Thursday, as traders squared positions ahead of the long weekend, with both markets closed for Good Friday on April 3.
The Canadian dollar closed at US$0.7959 or US$1=C$1.2564 on Thursday, which compares with Wednesday’s North American settlement of US$0.7920 or US$1=C$1.2626.
Positive Canadian trade data was underpinning the loonie. Statistics Canada said Canada’s trade deficit with the world narrowed to C$984 million in February, from a revised C$1.5 billion in January. Pre-report guesses called for the deficit to grow to C$2.0 billion.
However, weakness in crude oil values limited the Canadian currency’s upside, as it’s one of Canada’s biggest exports, brokers added.
Canadian bonds ended steady to slightly lower on Thursday, as traders moved to the sidelines ahead of the Easter long weekend, market watchers said.
The two-year bond yielded 0.495% Thursday, from 0.493% late Wednesday. The 10-year bond yield was unchanged at 1.315%. Bond yields rise as their prices fall.
