June 30, 2020 / 1:42 PM / 13 days ago

CANADA FX DEBT-C$ pares monthly gain as data shows record economic contraction

    * Canadian dollar dips 0.2% against the greenback
    * Loonie is on track to gain 0.7% in June
    * Price of U.S. oil falls 1.8%
    * Bond prices trade mixed across the curve

    TORONTO, June 30 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Tuesday, giving up some of this
month's gain, as Sino-U.S. tensions rose and domestic data
showed a record economic contraction in April due to the
coronavirus pandemic.
    The Canadian dollar        was trading 0.2% lower at 1.3678
to the greenback, or 73.11 U.S. cents. The currency, which is on
track to rise 0.7% in June, traded in a range of 1.3652 to
1.3699.
    Canada's real gross domestic product plunged 11.6% in April
from March, data from Statistics Canada showed. The decline was
less than the 13% predicted by analysts, but a flash estimate
for a 3% rebound in May was more muted than some forecasters had
expected.             
    U.S. index futures dipped as Washington began to eliminate
Hong Kong's special status under U.S. law in response to China's
national security law on the territory and after California and
Texas marked a record spike in coronavirus cases on Monday.
            
    Canada runs a current account deficit and is a major
producer of commodities, including oil, so the loonie tends to
be sensitive to the global flow of trade and capital.
    U.S. crude        prices were down 1.8% at $38.99 a barrel,
pressured by rising COVID-19 cases and a possible return of
Libyan oil production.             
    Canadian government bond yields were little changed across
the curve, with the 10-year             trading near flat at
0.508%.
    Canadian financial markets will be closed on Wednesday for
the Canada Day holiday.

 (Reporting by Fergal Smith; Editing by Steve Orlofsky)
  
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