By Commodity News Service Canada
WINNIPEG, July 24 – The Canadian dollar finished weaker relative to the US dollar on Thursday, reacting to disappointing US housing data, analysts said.
Sales of new homes in the US dropped by 8.1 per cent to 406,000 in June, which was below expectations. The drop in sales could hurt Canadian exports to the US, traders noted.
The Canadian dollar closed at US$0.9307 or US$1=C$1.0745 on Thursday, which compares with Wednesday’s North American settlement of US$0.9321 or US$1=C$1.0729.
Traders also continued to be cautious about riskier assets, such as the Canadian dollar, due to ongoing geopolitical worries.
Spillover pressure from the weakness in crude oil and gold prices also weighed on the Canadian currency.
Canadian bonds moved lower on Thursday, following the US Treasury market after the release of better than expected US jobless claims data, brokers said.
The two-year bond yielded 1.098% late Thursday, from 1.082% late Wednesday. The 10-year bond yielded 2.160%, from 2.130%. Bond yields fall as their prices rise.
