By Commodity News Service Canada
WINNIPEG, July 14 – The Canadian dollar ended unchanged relative to the US dollar on Tuesday, as traders were being cautious ahead of Wednesday’s Bank of Canada interest rate announcement, analysts said.
Some traders believe the Bank of Canada could make another interest rate cut on Wednesday, as recent data indicates the economy is still struggling.
The Canadian dollar closed at US$0.7849 or US$1=C$1.2740 on Tuesday, which compares with Monday’s North American settlement of US$0.7849 or US$1=C$1.2740.
Some support for the Canadian currency came from strength in crude oil values, as it is one of Canada’s biggest exporting products.
Canadian bonds were stronger on Tuesday, finding some support from disappointing US retail sales data, market watchers said.
The two-year bond yielded 0.457% on Tuesday, from 0.472% on Monday. The ten-year bond yield was at 1.647%, from 1.687%. Bond yields fall as their prices rise.
