June 29, 2020 / 1:33 PM / 17 days ago

CANADA FX DEBT-Loonie strengthens as data shows consumer confidence rebounding

    * Canadian dollar rises 0.2% against the greenback
    * Canadian consumer confidence climbs in June
    * Price of U.S. oil increases 0.9%
    * Canadian bond yields rise across a steeper curve

    TORONTO, June 29 (Reuters) - The Canadian dollar
strengthened against its U.S. counterpart on Monday as oil
prices rose and domestic data, showing rising consumer
confidence and building permits, supported the view that
Canada's economy is recovering from the coronavirus crisis.
    The Conference Board of Canada's Index of Consumer
Confidence rose 16 points to 79.7 in June as the country
continued to reopen from COVID-19 imposed lockdowns. The index
stands at about two-thirds of its pre-pandemic level of 120.6.
    Separate data, from Statistics Canada, showed that the value
of Canadian building permits rose by 20.2% in May from April. It
was the largest percentage increase since March 2009.
[nAQN02QWT1}    
    The price of oil, one of Canada's major exports, was
supported by improving economic data and supply cuts by major
producers, though a spike in new coronavirus infections around
the world capped the gains as some countries were forced to
reimpose partial lockdowns. U.S. crude        prices were up
0.9% at $38.85 a barrel.             
    Futures tracking U.S. stock indexes edged higher following a
selloff on Wall Street last week as investors weighed hopes of
more stimulus and improving data against a resurgence in
coronavirus cases.             
    The Canadian dollar        was trading 0.2% higher at 1.3659
to the greenback, or 73.21 U.S. cents. The currency, which
weakened 0.6% last week, traded in a range of 1.3646 to 1.3697.
    Speculators have cut their bearish bets on the Canadian
dollar, data from the U.S. Commodity Futures Trading Commission
showed on Friday. As of June 23, net short positions had
decreased to 20,834 contracts from 25,486 in the prior week.
    Canada's GDP data for April is due on Tuesday, which could
help guide expectations for further stimulus measures from the
Bank of Canada. 
    Canadian government bond yields were higher across a steeper
yield curve, with the 10-year             up 1.6 basis points at
0.525%.   

 (Reporting by Fergal Smith; Editing by Steve Orlofsky)
  
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