By Commodity News Service Canada
WINNIPEG, April 4 – The Canadian dollar finished stronger relative to the US dollar on Friday, lifted by positive Canadian employment data, analysts said.
According to Statistics Canada, 43,000 new jobs were created in Canada during the month of March, while the unemployment rate dropped to 6.9 per cent, from 7.0 per cent. Expectations called for just 22,500 new jobs in March.
The Canadian dollar closed at US$0.9107 or US$1=C$1.0981 on Friday, which compares with Thursday’s North American settlement of US$0.9059 or US$1=C$1.1039.
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Disappointing employment data from the US was also bullish for the Canadian dollar. Reports show that 192,000 new US jobs were created in March, falling below expectations of 200,000 new jobs.
Strength in crude oil and gold prices also spilled over to support the Canadian currency, traders said.
However, the Bank of Canada’s recent dovish tone, and expectations that interest rates will stay low for long in Canada continued to overhang the loonie.
Canadian bonds ended higher on Friday, finding support from the disappointing US employment data, market watchers said.
The two-year bond yielded 1.089% late Friday, from 1.102% late Thursday. The 10-year bond yielded 2.494%, from
2.544%. Bond yields fall as their prices rise.
