By Commodity News Service Canada
WINNIPEG, July 22 – The Canadian dollar moved fractionally lower relative to the US dollar on Tuesday. Traders were being cautious ahead of Wednesday’s Canadian retail sales data, the biggest economic indicator of the week, analysts said.
The Canadian dollar closed at US$0.9320 or US$1=C$1.0730 on Tuesday, which compares with Monday’s North American settlement of US$0.9320 or US$1=C$1.07.
US inflation data was in line with expectations, having little effect on the Canadian dollar. The US Labor Department said the consumer price index jumped 0.3 per cent in June.
Some spillover pressure came from the declines seen in commodity prices, including crude oil and gold, market watchers said.
Canadian bonds moved slightly higher on Tuesday, as geopolitical worries continued to provide some support, brokers said.
The two-year bond yielded 1.080% late Tuesday, from 1.085% late Monday. The 10-year bond yielded 2.126%, from 2.136%. Bond yields fall as their prices rise.
