By Commodity News Service Canada
WINNIPEG, Oct. 17 – The Canadian dollar eased relative to the US dollar on Friday. The US dollar moved higher in reaction to positive US economic data, analysts said.
A primary reading of US consumer sentiment, housing starts and building permits data were all better than expected on Friday.
The Canadian dollar closed at US$0.8868 or US$1=C$1.1277 on Friday, which compares with Thursday’s North American settlement of US$0.8890 or US$1=C$1.1248.
Spillover pressure from the weakness in gold, and ongoing worries about slow global economic growth, were also bearish.
However, strength in crude oil prices and positive Canadian inflation data were supportive. Statistics Canada said Canada’s annual inflation rate was 2.0 per cent in September, which was in line with expectations.
Canadian bonds were lower on Friday, reacting to the positive Canadian inflation data, market watchers said.
The two-year bond yielded 0.978% late Friday, from 0.926% late Thursday. The 10-year bond yielded 1.951%, from 1.926%. Bond yields fall as their prices rise.
