By Commodity News Service Canada
WINNIPEG, August 16 – The Canadian dollar weakened against its US counterpart on Friday, undermined by disappointing Canadian manufacturing data, analysts said.
Statistics Canada reported that Canadian manufacturing sales decreased by 0.5% to C$48.2 billion in June, falling below expectations of a 0.3% increase.
The Canadian currency was quoted at US$0.9672, or US$1=C$1.0339 at the close on Friday, which compares with Thursday’s North American close of US$0.9705, or US$=C$1.0304.
Positive US economic data was also bearish, as it helped fuel speculation that the US Federal Reserve will back out of stimulus programs sooner rather than later.
However, spill over support from the gains seen in commodities, including crude oil, gold and copper, helped to limit the downside.
Canadian bonds moved lower, undermined by worries that the US Federal Reserve will ease out of stimulus earlier than originally anticipated, traders said.
The two-year bond yielded 1.218% late Friday, from 1.208% late Thursday. The 10-year bond yielded 2.721%, from 2.670%. Bond yields fall as their prices rise.
