By Commodity News Service Canada
Winnipeg, July 30 – The Canadian dollar closed lower on Wednesday as data showed that the U.S. economy strongly rebounded in the second quarter, analysts say.
The loonie was down 0.36 of a cent to US$0.9173 or US$1 = C$1.0909 on Wednesday as U.S. gross domestic product grew a much better than expected four per cent after contracting in the January to March period. The contraction was revised lower to 2.1 per cent from 2.9 per cent.
Traders also took in positive employment news two days prior to the release of the American government’s July employment report. Analysts are expecting the report to show that approximately 233,000 jobs were created during July. Canadian employment data will be released on August 8.
Read Also
Canadian Financial Close: Loonie drops, new record for TSX
Glacier FarmMedia | MarketsFarm – The Canadian dollar tumbled on Friday but still ended the week slightly higher than the last….
The higher than expected U.S. GDP data also caused Canadian bonds to crumble, analysts say. The long end of the Canadian curve was hit particularly hard, with the selling pressure pushing the yield for the Canadian 30-year bond to 2.708 per cent from 2.644 per cent on Tuesday. Canada’s two-year bond was yielded at 1.108 per cent on Wednesday and the 10-year bond yielded at 2.162 per cent.
