By Commodity News Service Canada
WINNIPEG, August 1 – The Canadian dollar finished softer on Friday, reaching an almost eight-week low, reacting to disappointing US economic data, analysts said.
US data showed nonfarm employment jumped to 209,000 in July, while the unemployment rate climbed to 6.2 per cent from 6.1 per cent.
The Canadian dollar closed at US$0.9152 or US$1=C$1.0814 on Friday, which compares with Thursday’s North American settlement of US$0.9171 or US$1=C$1.0904.
A lack of interest in buying riskier assets, including the Canadian dollar, was also bearish for the loonie.
Weakness in crude oil values also weighed on the Canadian currency, though some support came from a rally in gold prices, brokers added.
Canadian bonds moved higher, reacting to the disappointing US employment data and a lack of interest in riskier assets, traders said.
The two-year bond yielded 1.073% late Friday, from 1.099% late Thursday. The 10-year bond yielded 2.116%, from 2.162%. Bond yields fall as their prices rise.
