June 18, 2020 / 7:36 PM / 17 days ago

CANADA FX DEBT-Canadian dollar falls as shutdowns leave scar on economic data

 (Adds strategist quotes and details throughout; updates prices)
    * Canadian dollar weakens 0.3% against the greenback
    * Canadian wholesale trade plunges 21.6% in April
    * Canada adds 208,400 jobs in May, ADP data shows
    * Canadian bond yields move lower across a flatter curve

    By Fergal Smith
    TORONTO, June 18 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Thursday as investors worried
about rising coronavirus cases and domestic data showed a record
plunge in wholesale trade, but the currency stuck to its recent
trading range.
   The Canadian dollar        was trading 0.3% lower at 1.3608
to the greenback, or 73.49 U.S. cents, but was among the
better-performing G10 currencies.
    The loonie "hasn't faded as much as commodity cousins AUD
and NZD," said Greg Anderson, global head of foreign exchange
strategy at BMO Capital Markets in New York. "Flows have been
light and this is just a listless in-range move."
    The currency, which on Monday hit a two-week low at 1.3685,
traded in a range of 1.3521 to 1.3616.
    Canadian wholesale trade fell 21.6% in April from March,
weighed by shutdowns related to the coronavirus outbreak,
Statistics Canada said.             
    Separate data, from payroll services provider ADP, showed
that Canada added 208,400 jobs in May, when lockdowns to help
contain the pandemic began to ease. Still, there was a downward
revision to April data to show 2,361,714 jobs were lost.
                
    The Bank of Canada sees the Canadian economy facing a
prolonged and uneven recuperation period with households
remaining cautious with their spending until there is a
coronavirus vaccine, Deputy Governor Lawrence Schembri said.
                    
     Global stocks fell as an increase in new coronavirus cases
in some U.S. states and China crushed hopes of a swift world
economic comeback from the pandemic.             
    The price of oil, one of Canada's major exports, rose as a
panel of OPEC and its allies met to review record oil supply
cuts. U.S. crude oil futures        settled 2.3% higher at
$38.84 a barrel.                 
    Canadian government bond yields were lower across a flatter
curve, with the 10-year yield             down 1.8 basis points
at 0.523%.

 (Reporting by Fergal Smith; Editing by Nick Zieminski; Editing
by Peter Cooney)
  
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