By Commodity News Service Canada
WINNIPEG, September 8 – The Canadian dollar was sharply lower relative to the US dollar on Monday, continuing to react to Friday’s disappointing jobs data from both Canada and the US, analysts said.
The Canadian dollar closed at US$0.9113 or US$1=C$1.0973 on Monday, which compares with Friday’s North American settlement of US$0.9190 or US$1=C$1.0881.
Spillover pressure from the declines seen in commodity prices, including crude oil and gold, also contributed to the softer tone.
Traders were also shedding riskier assets, including the loonie, amid nervousness ahead of Scotland’s referendum where the country will vote whether or not to become independent from England. Recent reports show that support for Scottish independence is rising.
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However, positive building data from Statistics Canada limited the downside. StatsCan reported C$9.2 billion worth of building permits were issued in July, up nearly 12 per cent from June.
Canadian bonds ended lower amid quiet activity on Monday, following the declines seen in the US Treasury market, participants said.
The two-year bond yielded 1.118% late Monday, from 1.115% late Friday. The 10-year bond yielded 2.141%, from 2.140%. Bond yields fall as their prices rise.
