By Commodity News Service Canada
WINNIPEG, Oct. 31 – The Canadian dollar was sharply lower relative to the US dollar on Friday, reacting to news that Japan unexpectedly expanded their current stimulus program, analysts said.
The Canadian dollar closed at US$0.8872 or US$1=C$1.1271 on Friday, which compares with Thursday’s North American settlement of US$0.8932 or US$1=C$1.1196.
Disappointing Canadian economic data was also bearish for the loonie. Statistics Canada said gross domestic product dropped 0.1 per cent last month, while pre-report expectations called for a flat reading.
Further spillover downward pressure came from the weakness in commodity prices, including large losses in crude oil and gold.
Canadian bonds closed mixed on Friday, reacting to the disappointing domestic GDP data from Statistics Canada, traders said.
The two-year bond yielded 1.025% late Friday, from 1.039% late Thursday. The 10-year bond yielded 2.049%, from 2.046%. Bond yields fall as their prices rise.
