By Commodity News Service Canada
WINNIPEG, Feb. 20 – The Canadian dollar closed lower relative to the US dollar on Friday, reacting to weak Canadian retail sales data, analysts said.
Statistics Canada said retail sales declined by 2.0 per cent to C$42.1 billion in December 2014, the largest drop since April of 2010.
The Canadian dollar closed at US$0.7971 or US$1=C$1.2546 on Friday, which compares with Thursday’s North American settlement of US$0.8001 or US$1=C$1.2498.
Spillover pressure from the declines seen in crude oil values further undermined the loonie, as did ongoing worries that the Bank of Canada will make more cuts to interest rates.
Nervousness about the Greek debt situation, as the country and other euro zone officials haven’t come to any agreements yet, added to the bearish tone.
Canadian bonds ended higher on Friday, finding support from the disappointing Canadian retail sales data. Concerns about global economic problems were also supportive, brokers said.
The two-year bond yielded 0.408% Friday, from 0.430% late Thursday. The 10-year bond yielded 1.438%, from 1.468%. Bond yields fall as their prices rise.
