Company News

CANADA FX DEBT-Canadian dollar pares weekly decline as economy grows

    * Canadian dollar rises 0.2% against the greenback
    * Canadian GDP gains 1.2% in August
    * Loonie on track to fall 1.3% for the week
    * Canadian bond yields rise across a flatter curve

    TORONTO, Oct 30 (Reuters) - The Canadian dollar strengthened
against its U.S. counterpart on Friday as data showed further
recovery in Canada's economy, but the currency was still headed
for one of its biggest weekly drops since April as coronavirus
cases surged globally.    
    The Canadian economy grew by 1.2% in August, the fourth
consecutive monthly gain, Statistics Canada said. It was a
bigger advance than analysts expected, while a flash estimate
showed further expansion of 0.7% in September.             
    The loonie        was trading 0.2% higher at 1.3290 to the
greenback, or 75.24 U.S. cents, having traded in a range of
1.3281 to 1.3346. It has fallen 1.3% since the start of the
week, which has cut its advance in October to just 0.2%.    
    The price of oil, one of Canada's major exports, moved in
and out of negative territory but remained on course for a
second monthly fall as rising COVID-19 cases in Europe and the
United States heighten concerns over fuel consumption.
    U.S. crude oil futures        were nearly unchanged at
$36.17 a barrel, while world stocks          fell further as
jitters over rising infections and next Tuesday's U.S.
presidential election more than offset strong euro zone
quarterly growth data.             [                
    Bank of Canada Governor Tiff Macklem sees the benefit of
sticking with increased government spending to support an
economy that has been hammered by the COVID-19 crisis, even as
the central bank keeps some of its own firepower in reserve.
    Earlier this week, the central bank left its benchmark
interest rate at a record low of 0.25% and tweaked asset
purchases toward longer-term bonds.
    Canadian government bond yields rose across a flatter curve,
with the 5-year            up 2.5 basis points at 0.392%.

 (Reporting by Fergal Smith; editing by Jonathan Oatis)