Canadian forex review: c$ closes unchanged

By Commodity News Service Canada

WINNIPEG, August 30 – The Canadian dollar was unchanged compared to its US counterpart on Friday, as traders were being cautious ahead of the long weekend, analysts said. Canadian and US markets will be closed on Monday for Labour Day.

The Canadian currency was quoted at US$0.9497, or US$1=C$1.0530 at the close on Friday, which compares with Thursday’s North American close of US$0.9497, or US$=C$1.0530.

Canadian gross domestic product (GDP) data was released Friday. Statistics Canada reported that the GDP expanded 1.7% at an annualized rate, which was better than the expected 1.6% expansion. But, that was cancelled out by disappointing monthly GDP data. StatsCan said GDP shrank 0.5% in June, while expectations called for a 0.4% decline.

Weakness in commodity prices, including crude oil, gold and copper was bearish, as was a lack of global risk sentiment due to the conflict in Syria.

Some support came from disappointing US economic data. The US government reported that personal spending increased by 0.1% in the US in July, which fell below expectations of a 0.3% rise.

Canadian bonds moved mostly higher on Friday as Canadian GDP data had a mixed effect on the market, industry watchers said.

The two-year bond yielded 1.194% late Friday, from 1.200% late Thursday. The 10-year bond yielded 2.600%, from 2.628% Bond yields fall as their prices rise.