By Commodity News Service Canada
WINNIPEG, July 18 – The Canadian dollar moved higher relative to the US dollar ahead of the weekend on Friday.
Positive Canadian inflation data helped to underpin the Canadian currency, analysts said. Statistics Canada reported the consumer price index was up 0.1 per cent in June, beating expectations of a slight drop.
The Canadian dollar closed at US$0.9314 or US$1=C$1.0736 on Friday, which compares with Thursday’s North American settlement of US$0.9295 or US$1=C$1.0758.
Strong Canadian wholesale sales data was also supportive. StatsCan said wholesale sales jumped 2.2 per cent to C$52.6 billion in May, beating expectations of a 0.6 per cent rise.
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However, the loonie’s upside was limited by ongoing worries about tension in Ukraine after Thursday’s plane crash. Spillover pressure from the weakness in commodity prices was also bearish.
Canadian bonds closed lower, as traders took profits following Thursday’s sharp gains and ahead of the weekend, brokers said. Spillover from the weakness in US Treasurys was also bearish.
The two-year bond yielded 1.079% late Friday, from 1.064% late Thursday. The 10-year bond yielded 2.165%, from 2.137%. Bond yields fall as their prices rise.
