By Commodity News Service Canada
Winnipeg, June 28 – The Canadian dollar was eased against its US counterpart at midday Friday, with some of the selling linked to a sharp rise in US bond yields, analysts said.
At 11:54 CDT Friday, the Canadian dollar was trading at US$0.9501, or US$1=C$1.0525, which compares with Thursday’s North American close of US$0.9547, or US$=C$1.0475.
Recent strong US data reinforced expectations that the US Federal Reserve will ease stimulus programs before the end of 2013. The Canadian dollar continued to move lower in reaction to those ideas.
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The liquidation of positions ahead of the quarter end, month end and Canadian long weekend was also a bearish feature. Canadian markets will be closed on Monday, July 1 to observe Canada day.
However, strength seen in commodities, including crude oil, gold and copper, spilled over to help limit the Canadian dollar’s downside potential.
Canadian gross domestic product (GDP) data was released Friday morning, and matched pre-report expectations, therefore had little effect on the Canadian dollar. According to Statistics Canada, real gross domestic product grew 0.1% in April.
The Toronto Stock Exchange was up 106.99 points, or 0.89%, at 11:54 CDT Friday, to sit at 12,112.77.
