By Commodity News Service Canada
WINNIPEG, Nov. 7 – The Canadian dollar closed lower against the US dollar Thursday, undermined by the unexpected decision by the European Central Bank to cut interest rates, analysts said.
The Canadian currency was quoted at US$0.9559 or US$1=C$1.0461 at the close on Thursday, which compares with Wednesday’s North American settlement of US$0.9599 or US$=C$1.0418.
Positive US economic growth data was also bearish for the Canadian dollar. The US government reported that US economic growth increased by 2.8% in the third quarter of 2013, up from 2.5% in the second quarter. Pre-report expectations called for a 2% jump during the third quarter.
Read Also
Canadian Financial Close: Loonie drops, new record for TSX
Glacier FarmMedia | MarketsFarm – The Canadian dollar tumbled on Friday but still ended the week slightly higher than the last….
Declines in commodities, including crude oil and gold, also spilled over to weigh on the value of the Canadian dollar.
There was no significant Canadian economic data released on Thursday. Traders were looking ahead to Friday’s Canadian employment data from Statistics Canada.
Canadian bonds were higher on Thursday, lifted by the unexpected lowering of interest rates by the European Central Bank, traders said.
The two-year bond yielded 1.098% late Thursday, from 1.118% late Wednesday. The 10-year bond yielded 2.523%, from 2.540%. Bond yields fall as their prices rise.
