By Commodity News Service Canada
WINNIPEG, March 7 – The Canadian dollar closed sharply lower against the US dollar, undermined by disappointing Canadian employment data paired with positive US jobs figures, analysts said.
Statistics Canada reported that 7,000 jobs were lost in Canada during the month of February, while the unemployment rate remained steady at 7 per cent. Expectations called for an increase of 15,000 jobs.
The US government reported 175,000 new jobs were added to the economy in February, beating expectations of 150,000 new jobs.
The Canadian dollar closed at US$0.9017 or US$1=C$1.1090 on Friday, which compares with Thursday’s North American settlement of US$0.9098 or US$=C$1.0992.
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Weakness in gold prices also weighed on the Canadian currency, though stronger crude oil values were supportive.
Positive Canadian trade data also helped to limit the downside. StatsCan said Canada’s trade deficit with the world narrowed to C$177 million in January, from C$922 million in December.
Canadian bonds were lower, following the losses seen in the US Treasury market. Losses in the US were linked to the positive US employment data, traders said.
The two-year bond yielded 1.056% late Friday, from
1.053% late Thursday. The 10-year bond yielded 2.522%, from
2.504%. Bond yields fall as their prices rise.
