Canadian forex review: C$ fractionally weaker

By Commodity News Service Canada

WINNIPEG, Feb. 14 – The Canadian dollar moved fractionally lower against the US dollar on Friday, as traders were being cautious ahead of the long weekend. Canadian and US markets will both be closed on Monday for holidays.

The Canadian dollar closed at US$0.9105 or US$1=C$1.0983 on Friday, which compares with Thursday’s North American settlement of US$0.9110 or US$=C$1.0977.

Disappointing Canadian manufacturing data was bearish for the Canadian dollar. Statistics Canada reported manufacturing sales were down 0.9% in December, while expectations called for a flat reading.

However, spillover support from sharply higher gold prices helped to underpin the value of the Canadian dollar, market watchers said.

Canadian bonds were mixed ahead of the long weekend on Friday. The two-year bond was up slightly, while the 10-year bond moved lower along with the US Treasury market, analysts added.

The two-year bond yielded 1.016% late Friday, from 1.019% late Thursday. The 10-year bond yielded 2.469%, from 2.459%. Bond yields fall as their prices rise.