By Commodity News Service Canada
WINNIPEG, June 28 – The Canadian dollar weakened against its US counterpart on Friday, undermined by the liquidation of positions ahead of the month and quarter end, as well as the Canadian long weekend.
Canadian markets will be closed on Monday, July 1 to observe the Canada Day holiday.
The Canadian currency was quoted at US$0.9508, or US$1=C$1.0518 at the close on Friday, which compares with Thursday’s North American close of US$0.9547, or US$=C$1.0475.
Some of the selling of the Canadian dollar was also linked to recent strong US economic data which reinforced sentiment that the US Federal Reserve will be able to ease out of monetary stimulus before the end of 2013.
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Some of the weakness seen in commodities, including crude oil, also spilled over to weigh on the value of the Canadian dollar.
Canadian gross domestic product (GDP) data was released Friday morning, and matched pre-report expectations, therefore had little effect on the Canadian dollar. According to Statistics Canada, real gross domestic product grew 0.1% in April.
Canadian bonds finished lower on Friday, following the same action seen in the US Treasury market, analysts said.
The two-year bond yielded 1.224% late Friday, from 1.200% late Thursday. The 10-year bond yielded 2.440%, from 2.415%. Bond yields fall as their prices rise.
