By Commodity News Service Canada
WINNIPEG, June 25 – The Canadian dollar ended stronger against the US dollar on Wednesday, reacting to disappointing economic growth data out of the US, analysts said.
Data showed the US economy slowed by 2.9 per cent during the first quarter of 2014, while pre-report estimates called for a 2.0 per cent drop.
The Canadian dollar closed at US$0.9327 or US$1=C$1.0722 on Wednesday, which compares with Tuesday’s North American settlement of US$0.9308 or US$1=C$1.0744.
Spillover support for the Canadian currency also came from the advances seen in commodities, including crude oil and copper.
Canadian bonds also closed higher Wednesday’s, reacting to the unexpected weak US economic figures, according to market watchers.
The two-year bond yielded 1.117% late Wednesday, from 1.120% late Tuesday. The 10-year bond yielded 2.265%, from 2.283%. Bond yields fall as their prices rise.
