By Commodity News Service Canada
WINNIPEG, Nov. 28 – The Canadian dollar dropped another three-quarters of a cent on Friday, as crude oil values continued to tumble. OPEC’s announcement saying they won’t cut production on Thursday continued to weigh on oil, as did long liquidation and chart-based selling.
The Canadian dollar closed at US$0.8741 or US$1=C$1.1440 on Friday, which compares with Thursday’s North American settlement of US$0.8825 or US$1=C$1.1332.
The weakening oil market dominated the Canadian dollar trade on Friday, and erased any effect positive gross domestic product data had on the currency, analysts said.
Statistics Canada reported that Canada’s GDP grew by 2.8 per cent in the third quarter of 2014, above pre-report expectations of a 2.1 per cent growth, and the Bank of Canada’s last prediction of 2.3 per cent.
Canadian bonds closed sharply higher on Friday, continuing to react to the tumbling crude oil market while ignoring the positive Canadian GDP figures, brokers said.
The two-year bond yielded 0.988% late Friday, from 1.026% late Thursday. The 10-year bond yielded 1.848%, from 1.898%. Bond yields fall as their prices rise.
