By Commodity News Service Canada
WINNIPEG, July 17 – The Canadian dollar eased slightly against the US dollar on Thursday, with traders being cautious ahead of upcoming inflation data, analysts said.
The Canadian dollar closed at US$0.9295 or US$1=C$1.0758 on Thursday, which compares with Wednesday’s North American settlement of US$0.9306 or US$1=C$1.0746.
An unwillingness to take on riskier assets after the Malaysian Airlines plane was shot down in Ukraine was bearish for the Canadian dollar, market watchers said.
However, some spillover support for the Canadian currency came from the advances seen in commodity prices, including crude oil and gold.
Canadian bonds closed sharply higher, as traders were flocking to safe-haven assets following news of the downed plane in Ukraine, brokers said. Spillover support also came from the gains seen in the US Treasury market after disappointing economic data from the US.
The two-year bond yielded 1.075% late Thursday, from 1.090% late Wednesday. The 10-year bond yielded 2.154%, from 2.202%. Bond yields fall as their prices rise.
