By Commodity News Service Canada
WINNIPEG, Oct. 10 – The Canadian dollar was down sharply against the US dollar on Friday, undermined by liquidation ahead of the long weekend, analysts said. Canadian markets are closed for Thanksgiving on Monday.
The Canadian dollar closed at US$0.8915 or US$1=C$1.1217 on Friday, which compares with Thursday’s North American settlement of US$0.8950 or US$1=C$1.1173.
Weakness in commodity prices, such as crude oil and gold, contributed the loonie’s decline, as did ongoing global economic concerns after some disappointing data releases during the week.
However, positive Canadian employment data limited the Canadian dollar’s losses. Statistics Canada said 74,100 jobs were created in September, beating expectations of 20,000 new jobs. The unemployment rate dropped to a nearly six-year low, now at 6.8 per cent.
Canadian bonds ended mostly higher on Friday, seeing an upward correction after Thursday’s decline. Strength in the US Treasury market was also bullish, brokers said.
The two-year bond yielded 1.053% late Friday, from 1.043% late Thursday. The 10-year bond yielded 2.014%, from 2.033%. Bond yields fall as their prices rise.
