July 8, 2020 / 1:42 PM / a month ago

CANADA FX DEBT-Canadian dollar firms ahead of Ottawa's 'fiscal snapshot'

    * Canadian dollar rises 0.1% against the greenback
    * Loonie hits a six-day low intraday at 1.3623
    * Price of U.S. oil unchanged at $40.62 a barrel 
    * Canadian bond yields mixed across steeper curve

    TORONTO, July 8 (Reuters) - The Canadian dollar edged higher
against its U.S. counterpart on Wednesday but stuck to a narrow
range as investors globally weighed the risk of stalling
economic recovery from the coronavirus crisis and ahead of a
"fiscal snapshot" from Ottawa.
    Canadian Finance Minister Bill Morneau is expected this
afternoon to outline the current balance sheet, with the Globe
and Mail reporting that a deficit of more than C$300 billion
would be forecast.             
    Ottawa is rolling out more than C$170 billion of direct aid
to support the economy during the coronavirus pandemic and a
government source says it is eyeing issuing longer-term debt to
take advantage of low interest rates.
    Global stocks          faltered as an increase in new
coronavirus cases in some parts of the world undermined
prospects for a quick economic recovery.             
    Oil prices were broadly stable for a fourth session, with
rising U.S. crude stockpiles and an increase in U.S. coronavirus
infections arresting a recent recovery sparked by easing
lockdowns. U.S. crude        prices were unchanged at $40.62 a
barrel.             
    The Canadian dollar        was trading 0.1% higher at 1.3585
to the greenback, or 73.61 U.S. cents. The currency touched its
weakest intraday level since last Thursday at 1.3623.
    Canada's jobs report for June is due on Friday, which could
help guide expectations for further stimulus measures from the
Bank of Canada. The central bank is due to make an interest rate
announcement and present updated economic projections next week.
    Canadian government bond yields were mixed across a steeper
curve, with the 10-year             up less than a basis point
at 0.521%.

 (Reporting by Fergal Smith; Editing by Bernadette Baum)
  
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below