By Commodity News Service Canada
WINNIPEG, August 28 – The Canadian dollar was slightly higher relative to the US dollar on Thursday, continuing to find support from recent news that US fast food chain Burger King is purchasing Canadian company Tim Hortons, analysts said.
The Canadian dollar closed at US$0.9219 or US$1=C$1.0847 on Thursday, which compares with Wednesday’s North American settlement of US$0.9212 or US$1=C$1.0855.
Expectations of a positive Canadian gross domestic product report on Friday were also bullish. Traders believe Statistics Canada will show GDP grew by 0.2 per cent in June, which would equal an annualized growth rate of 2.6 per cent.
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Strength in commodities, including crude oil and gold, further underpinned the value of the Canadian dollar.
However, some traders were shying away from risk, including the Canadian dollar, in light of news that more political turmoil is happening in Ukraine.
Canadian bonds ended mostly higher on Thursday, finding support from concerns about renewed fighting between Ukraine and Russia, brokers said.
The two-year bond yielded 1.102% late Thursday, from 1.101% late Wednesday. The 10-year bond yielded 1.999%, from 2.006%. Bond yields fall as their prices rise.