By Commodity News Service Canada
WINNIPEG, July 25 – The Canadian dollar finished sharply lower, losing more than half a cent relative to the US dollar on Friday.
Positive US economic data helped to bolster the greenback, which in turn sparked a sell-off in the Canadian currency. Reports showed that orders for durable goods in the US jumped 0.7 per cent in June, following a one per cent drop in May.
The Canadian dollar closed at US$0.9247 or US$1=C$1.0814 on Friday, which compares with Thursday’s North American settlement of US$0.9307 or US$1=C$1.0745.
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Traders were also shedding riskier assets, including the Canadian dollar, in favour of safer investments, such as the US dollar, due to ongoing geopolitical concerns, analysts said.
Expectations that a slew of US data next week will show the country’s economy continues to improve also weighed on the loonie.
Spillover pressure from the weakness in crude oil and copper prices was also bearish, though a sharp jump in gold prices was somewhat supportive.
Canadian bonds moved sharply higher on Friday, aided by disappointing economic data out of Europe and ongoing geopolitical concerns, traders said.
The two-year bond yielded 1.083% late Friday, from 1.098% late Thursday. The 10-year bond yielded 2.112%, from 2.154%. Bond yields fall as their prices rise.
