By Commodity News Service Canada
WINNIPEG, Jan. 9 – The Canadian dollar dropped nearly a quarter-of-a-cent against the US dollar Friday, reacting to weak Canadian employment data, analysts said.
According to Statistics Canada, 4,300 jobs were lost from the Canadian economy in December, while the unemployment rate held steady at 6.6 per cent. Pre-report expectations called for a gain of at least 10,000 new jobs last month.
The Canadian dollar closed at US$0.8427 or US$1=C$1.1866 on Friday, which compares with Thursday’s North American settlement of US$0.8449 or US$1=C$1.1836.
Read Also
Canadian Financial Close: C$ ends steady Wednesday
Glacier FarmMedia — The Canadian dollar was steady on the day at Wednesday’s close, recovering from three-week lows relative to…
Strong US employment data was also undermining the loonie, as it reinforced expectations that the US will raise interest rates before Canada does.
Crude oil values continued to plunge on Friday, which added to the bearish tone, though a rally in gold values was supportive overall.
Some short covering after the Canadian currency fell to a fresh multi-year low during Friday’s trading session was also limiting the downside.
Canadian bonds closed higher on Friday, reacting to ongoing weakness in crude oil values and disappointing Canadian employment data, brokers said.
The two-year bond yielded 0.954% late Friday, from 0.981% late Thursday. The 10-year bond yielded 1.667%, from 1.706%. Bond yields fall as their prices rise.
