By Commodity News Service Canada
WINNIPEG, May 15 – The Canadian dollar ended weaker against the US dollar Friday, with some of the activity linked to positioning ahead of the long weekend. Canadian markets are closed for Victoria Day on Monday, May 18, while US markets will be open.
The Canadian dollar closed at US$0.8318 or US$1=C$1.2022 on Friday, which compares with Thursday’s North American settlement of US$0.8384 or US$1=C$1.1999.
Weakness in commodities, including crude oil, weighed on the Canadian dollar, as did general strength in the US dollar index.
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Worries that recent strength in the Canadian dollar could lead to further interest rate cuts by the Bank of Canada were also bearish, traders said.
However, positive Canadian manufacturing data limited the downside. Statistics Canada said manufacturing sales rose 2.9 per cent to C$51.0 billion in March, the largest monthly gain in almost four years. Strong demand for automobiles and aerospace parts were behind the sharp advance.
Canadian bonds were lower after a short session on Friday, as markets closed early ahead of the Canadian long weekend. Weakness in the US Treasury market weighed on Canadian bonds, analysts said.
The two-year bond yielded 0.650% Friday, from 0.672% late Thursday. The 10-year bond yield was at 1.712%, from 1.806%. Bond yields fall as their prices rise.
