By Commodity News Service Canada
WINNIPEG, Jan. 30 – The Canadian dollar ended sharply lower relative to the US dollar on Friday, reacting to disappointing Canadian gross domestic product (GDP) data, analysts said.
Statistics Canada reported Canada’s GDP dropped by 0.2 per cent in November, while pre-report expectations called for a flat reading.
The Canadian dollar closed at US$0.7867 or US$1=C$1.2711 on Friday, which compares with Thursday’s North American settlement of US$0.7930 or US$1=C$1.2611.
Ongoing worries about slow global economic growth and ideas that weak oil prices are hurting Canada’s economy added to the bearish tone.
However, crude oil values moved sharply higher on Friday, which was limiting the downside. Strength in gold prices was also supportive.
Canadian bonds ended sharply higher on Friday, with the disappointing domestic GDP data behind the advances, market watchers said.
The two-year bond yielded 0.400% Friday, from 0.451% late Thursday. The 10-year bond yielded 1.280%, from 1.364%. Bond yields fall as their prices rise.
