C$ gains despite GDP miss as US bond yields ease

TORONTO: The Canadian dollar rose against its US counterpart on Friday as a drop in US bond yields offset increased bets the Bank of Canada would begin cutting interest rates next week following the release of weaker-than-expected Canadian GDP data.

The loonie was 0.3% higher at 1.3640 to the US dollar, or 73.31 US cents, after trading in a range of 1.3620 to 1.3689. For the week, the currency was up 0.2%.

“The CAD is holding a minor gain on a soft-looking USD on the week,” Shaun Osborne, chief currency strategist at Scotiabank, said in a note.

The “saving grace” for the currency on Friday was weaker than expected US personal spending data that weighed on US yields and the greenback, Osborne said.