Canadian forex review: C$ falls with crude oil
By Commodity News Service Canada
WINNIPEG, August 21 – The Canadian dollar eased against the US dollar on Friday, following weakness in crude oil values, analysts said.
The Canadian dollar closed at US$0.7593 or US$1=C$1.3169 on Friday, which compares with Thursday’s North American settlement of US$0.7645 or US$1=C$1.3081.
Ongoing worries about slow economic growth in Canada, and concerns that China’s economy could collapse, were also bearish, traders noted.
A new report shows that factory activity in China has dropped to a 6-and-a-half year low so far this month.
However, positive Canadian data limited the downside. Statistics Canada said the Consumer Price Index (CPI) rose 1.3 per cent in the 12 months to July, which was in line with expectations.
The government agency also reported that retail sales increased 0.6 per cent to C$43.2 billion in June, above expectations of a 0.2 per cent jump.
Canadian bonds moved higher on Friday, as investors continued to flock to safe-haven assets amid worries about economic turmoil in China, brokers said.
The two-year bond yielded 0.337% on Friday, from 0.354% on Thursday. The ten-year bond yield was at 1.271, from 1.292%. Bond yields fall as their prices rise.