July 3, 2020 / 1:30 PM / a month ago

CANADA FX DEBT-Canadian dollar, 'stuck in a range,' clings to weekly gain

    * Canadian dollar trades near flat against the greenback
    * For the week, the loonie is on track to rise 0.9%
    * Price of U.S. oil decreases 1.2%
    * Canadian bond yields dip across much of a flatter curve

    By Fergal Smith
    TORONTO, July 3 (Reuters) - The Canadian dollar was little
changed against its U.S. counterpart on Friday, holding on to
this week's rally as it kept to a narrow trading range with U.S.
markets closed in observance of Independence Day.
    The loonie        was trading nearly unchanged at 1.3567 to
the greenback, or 73.71 U.S. cents. It traded in a range of
1.3553 to 1.3577. For the week, it was on track to rise 0.9%.
    "The CAD appears to be stuck in a range ... in the absence
of any major domestic developments," strategists at Scotiabank,
including Shaun Osborne, said in a note.
    It is "supported near 1.37 but better offered near 1.35,"
the strategists said.    
    The loonie has been supported this week by evidence that the
economy is recovering from the coronavirus crisis, including
data on Thursday showing that exports climbed 6.7% in May.
    But investors are wary of a surge of new coronavirus
infections that has prompted U.S. states to delay and in some
cases reverse plans to let stores reopen and activities resume.
    Canada sends about 75% of its exports to the United States,
including oil.
     U.S. crude        prices were down 1.2% at $40.18 a barrel
as a resurgence of coronavirus cases raised concern that fuel
demand growth could stall.
    Canadian government bond yields were lower across much of a
flatter curve, with the 10-year             down 1.6 basis
points at 0.545%.
    Canada's employment report for June is due next week, while
the Bank of Canada will release its Business Outlook Survey and
Finance Minister Bill Morneau will present an economic and
fiscal snapshot.

 (Reporting by Fergal Smith
Editing by Chizu Nomiyama)
  
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