By Commodity News Service Canada
WINNIPEG, Oct. 9 – The Canadian dollar was down sharply against the US dollar on Thursday, undermined by profit taking on Wednesday’s rally, analysts said.
The Canadian dollar closed at US$0.8950 or US$1=C$1.1173 on Thursday, which compares with Wednesday’s North American settlement of US$0.9006 or US$1=C$1.1104.
Concerns about slow economic growth, due to recent disappointing data out of Germany, and news out of other parts of Europe, were weighing on the loonie as well.
German exports dropped 5.8 per cent in August compared to July, data showed, which was renewing worries about slow economic growth in the country.
Read Also
Canadian Financial Close: C$ weakens Thursday
Glacier FarmMedia — The Canadian dollar was weaker relative to its United States counterpart on Thursday, as an unexpected increase…
Further spillover pressure came from the large declines seen in crude oil values, though a sharp rally in gold was supportive.
Positive Canadian home prices data was also friendly for the Canadian currency. Statistics Canada said new home prices were up 0.3 per cent in August, above expectations of a 0.1 per cent increase.
Market players were looking ahead to Friday morning’s Statistics Canada employment data release. Expectations call for 20,000 new jobs in September and a steady unemployment rate.
Canadian bonds ended slightly lower on Thursday after a day of choppy activity as traders were awaiting Friday’s Canadian employment figures, brokers said.
The two-year bond yielded 1.066% late Thursday, from 1.054% late Wednesday. The 10-year bond yielded 2.031%, from 2.017%. Bond yields fall as their prices rise.
