By Commodity News Service Canada
WINNIPEG, Nov. 8 – The Canadian dollar closed lower against the US dollar Friday, with better than expected US employment data behind some of the selling, analysts said.
The US economy created 204,000 new jobs in October, up from 148,000 the previous month and above expectations of 120,000 new jobs. The positive data shows the US economy is continuing to recover, which may spark a decision by the US Federal Reserve to slow stimulus measures.
The Canadian currency was quoted at US$0.9544 or US$1=C$1.0478 at the close on Friday, which compares with Thursday’s North American settlement of US$0.9559 or US$=C$1.0461.
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Sharp losses seen in gold prices, one of Canada’s top export products, also helped to weigh on the Canadian dollar. However, crude oil values were firmer, which was supportive.
The Canadian dollar was also underpinned by positive Canadian employment data. Statistics Canada reported that 13,200 new jobs were created in October which compares with expectations of 11,000 new jobs.
Canadian bonds were lower on Friday, following the declines seen in the US Treasury market following the release of strong US employment data, brokers said.
The two-year bond yielded 1.127% late Friday, from 1.096% late Thursday. The 10-year bond yielded 2.603%, from 2.516%. Bond yields fall as their prices rise.
