By Commodity News Service Canada
WINNIPEG, May 30 – The Canadian dollar ended slightly softer compared to the US dollar on Friday, with some weakness linked to disappointing Canadian growth data, analysts said.
According to Statistics Canada, real gross domestic product (GDP) rose 0.3 per cent in the first quarter 2014, following 0.7 per cent growth in the last quarter of 2013.
The Canadian dollar closed at US$0.9223 or US$1=C$1.0842 on Friday, which compares with Thursday’s North American settlement of US$0.9228 or US$1=C$1.0836.
Spillover pressure from the weakness in crude oil, gold and copper prices was also responsible for some of the Canadian dollar’s decline.
However, the losses were limited by cautiousness ahead of next week’s Bank of Canada policy rate announcement, scheduled for Wednesday, June 4.
Canadian bonds closed higher on Friday, reacting to the disappointing Canadian gross domestic product data, market watchers said.
The two-year bond yielded 1.048% late Friday, from 1.052% late Thursday. The 10-year bond yielded 2.243%, from 2.269%. Bond yields fall as their prices rise.
