TORONTO, May 31 (Reuters) – The Canadian dollar rose against its U.S. counterpart on Friday as a drop in U.S. 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 U.S. dollar, or 73.31 U.S. cents, after trading in a range of 1.3620 to 1.3689. For the week, the
“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 U.S. personal spending data that weighed on U.S. yields and the greenback, Osborne said.
The U.S. dollar and Treasury yields fell as data showed U.S. inflation tracked sideways in April and consumer spending weakened.
The Canadian economy expanded at a slower-than-expected annualized rate of 1.7% in the first quarter,…
