By Commodity News Service Canada
WINNIPEG, Feb. 6 – The Canadian dollar closed sharply lower on Friday, reacting to positive US jobs data, as it indicated the US economy continues to improve, analysts said.
The US Labor Department said 257,000 new jobs were created last month, above pre-report expectations of about 233,000 new jobs.
The Canadian dollar closed at US$0.7985 or US$1=C$1.2524 on Friday, which compares with Thursday’s North American settlement of US$0.8049 or US$1=C$1.2424.
Ongoing worries about slow global economic growth and the negative impact weak oil prices are having on Canada’s economy were also bearish.
However, crude oil values saw a recovery on Friday, which helped to limit the downside. Positive Canadian jobs data was also supportive.
Statistics Canada said 35,000 new jobs were created in January, above pre-report expectations of 4,500 new jobs.
Canadian bonds ended sharply lower on Friday, reacting to strong employment data from both Canada and the US, market watchers said.
The two-year bond yielded 0.477% Friday, from 0.433% late Thursday. The 10-year bond yielded 1.425%, from 1.361%. Bond yields fall as their prices rise.
