By Commodity News Service Canada
WINNIPEG, August 29 – The Canadian dollar was weaker on Friday, dropping back below the 92 cents US mark.
The currency was consolidating after reaching a one-month high earlier in the day, and a head of the long weekend, analysts said. Canadian and US markets will be closed for Labour Day on Monday, September 1.
The Canadian dollar closed at US$0.9197 or US$1=C$1.0873 on Friday, which compares with Thursday’s North American settlement of US$0.9219 or US$1=C$1.0847.
Weakness in gold prices and ongoing worries about political problems in the Black Sea region were also responsible for some of the weakness.
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However, positive Canadian economic data was supportive. Statistics Canada said gross domestic product (GDP) expanded by an annualized 3.1 per cent, beating the 2.7 per cent expansion that was expected.
Canadian bonds ended slightly lower on Friday, reacting to the better than expected Canadian GDP data released by StatsCan, brokers said. Though, strength in US Treasurys was supportive.
The two-year bond yielded 1.104% late Friday, from 1.101% late Thursday. The 10-year bond yielded 1.999%, from 1.998%. Bond yields fall as their prices rise.
