Futures and Commodity Market News

Sun May 11, 2008

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WINNIPEG, MB, May 02, 2008 (Resource News International via COMTEX) -- The Canadian dollar finished little changed versus the US currency on Friday. Some early weakness in the Canadian currency had been attributed to stronger than expected economic data in the US and the subsequent strengthening move in the US unit, market watchers said.

However, the weakness in the Canadian currency was eroded as the session progressed and global crude oil and gold values climbed upwards, brokers said. A rally in North American equity markets also generated some support for the Canadian unit.

The Canadian currency closed out the North American session at 98.07 US cents or C$1.0196 on Friday. This compares with Thursday's closing North American mark of 98.08 US cents or C$1.0195.

Analysts said that with no key domestic data due prior to next Friday's April employment and March merchandise trade statistics, Canadian dollar movements will likely continue to be sensitive to commodity and equity market developments.

Canadian bonds ended significantly lower across the yield curve on Friday following the trend established in US Treasurys, market watchers said.

US issues were pushed lower by better-than-expected US jobs data for April which suggested the US economy might not be in such dire shape.

The Canadian market outperformed U.S. Treasurys, driving the yield spread in 10-year bonds deeper into negative territory.

With a blank slate on the Canadian data front Friday, the market fell prey to the swift descent of US Treasurys after news that the US economy lost 20,000 jobs in April, far fewer than the 85,000 expected by economists.

Resource News International

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