July 21, 2020 / 1:48 PM / 13 days ago

CANADA FX DEBT-C$ rises to 5-week high vs U.S. dollar as oil prices rise

    * Canadian dollar at C$1.3459 or 74.30 U.S. cents
    * Bond prices mixed across the maturity curve

    By Saqib Iqbal Ahmed
    July 21 (Reuters) - The Canadian dollar strengthened to a
more than five-week high against its U.S. counterpart on
Tuesday, helped by a rise in oil prices on positive news about
vaccine trials and a European Union stimulus deal as well as
data showing a rebound in retail sales. 
    The Canadian dollar        was at C$1.3459 to the greenback,
or 74.30 U.S. cents, stronger than Monday's close of C$1.3533,
or 73.89 U.S. cents.
    The loonie, which has been in a narrow range against the
greenback for the last seven weeks, was at its strongest since
June 11.
    "Oil, and by association the Canadian dollar, and other
oil-correlating currencies, have been boosted by a broader
risk-on theme in global markets," said Jonathan Coughtrey,
managing director at Action Economics.
    The price of oil, one of Canada's major exports, rose on
Tuesday, helped by positive news about vaccine trials and a
European Union stimulus deal, which took prices to levels last
seen when an oil price war erupted in early March between Russia
and Saudi Arabia.             
    Canadian retail sales increased by a record 18.7% in May
from April to C$41.79 billion ($31.06 billion), as higher sales
at motor vehicle and parts dealers led the rebound, Statistics
Canada said on Tuesday.             
    Sales increased in 10 of 11 subsectors. In volume terms,
retail sales were up 17.8%, following a record decline of 24.1%
in April.
    Canadian government bond prices were mixed across the 
maturity curve. The two-year            yield was flat on the
day at 0.27%., while the benchmark Canadian 10-year            
yield slipped to 0.503% from Monday's 0.514%.

 (Reporting by Saqib Iqbal Ahmed; editing by Jonathan Oatis)
  
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