By Commodity News Service Canada
WINNIPEG, July 10 – The Canadian dollar was firmer relative to the US dollar on Thursday, lifted by strong demand for long-term Canadian bonds, analysts said.
The Canadian dollar closed at US$0.9392 or US$1=C$1.0647 on Thursday, which compares with Wednesday’s North American settlement of US$0.9381 or US$1=C$1.0660.
Strength in commodity prices, including crude oil, gold and copper, also spilled over to underpin the value of the Canadian currency.
However, disappointing economic news from China helped to limit its upside.
Traders were looking ahead to Friday’s Canadian employment data, which is expected to show the unemployment rate held steady and 24,000 new jobs were created in June.
Canadian bonds closed slightly higher, with strong demand and global economic worries providing support, according to brokers.
The two-year bond yielded 1.121% late Thursday, unchanged from Wednesday. The 10-year bond yielded 2.233%, from 2.247%. Bond yields fall as their prices rise.
