June 15, 2020 / 2:47 PM / 22 days ago

CANADA FX DEBT-C$ hits a 2-week low as investors fret about new coronavirus cases

    * Canadian dollar falls 0.2% against the greenback
    * Canadian factory sales decrease by 28.5% in April from
March
    * Price of U.S. oil declines 2.9%
    * Canadian bond yields ease across a flatter curve

    TORONTO, June 15 (Reuters) - The Canadian dollar weakened to
a two-week low against its U.S. counterpart on Monday as
investors worried about a potential second wave of the
coronavirus pandemic and domestic data showed a
deeper-than-expected plunge in April factory sales.
    The loonie        was trading 0.2% lower at 1.3617 to the
greenback, or 73.44 U.S. cents. The currency, which fell 1.2%
last week, touched its weakest intraday level since June 1 at
1.3685.
    U.S. stocks fell as a resurgence in new coronavirus cases in
China and parts of the United States dampened hopes of a swift
economic revival that drove the Nasdaq to record highs last
week.             
    Worries about the pandemic also weighed on the price of oil,
one of Canada's major exports. U.S. crude        prices were
down 2.9% at $35.2 a barrel.      
    Canadian factory sales decreased by 28.5% in April from
March on a record decrease in motor vehicle assembly, as well as
a decline in petroleum and coal products, Statistics Canada
said. Analysts had forecast a 20% decrease in the value of
shipments.             
    Separate data, from the Canadian Real Estate Association,
showed that Canadian home sales rebounded by a record 56.9%
month-over-month in May, when lockdowns to help contain the
coronavirus pandemic eased, after plunging in April.
            
    Canadian government bond yields were lower across a flatter
curve in sympathy with U.S. Treasuries, with the 10-year
            down 3.7 basis points at 0.497%. The 10-year yield
touched its lowest intraday since May-15 at 0.468%. 
    

 (Reporting by Fergal Smith
Editing by Nick Zieminski)
  
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