C$ retreats from five-month high as investors await U.S. stimulus

FILE PHOTO: A Canadian dollar coin, commonly known as the "Loonie", is pictured in this illustration picture taken in Toronto, January 23, 2015. REUTERS/Mark Blinch

TORONTO (Reuters) - The Canadian dollar weakened against the greenback on Thursday, with the currency pulling back from a five-month high the day before as investors awaited signs of agreement on U.S. economic stimulus and ahead of U.S. and domestic jobs data on Friday.

The loonie CAD= was trading 0.2% lower at 1.3285 to the greenback, or 75.27 U.S. cents. The currency, which on Wednesday notched its strongest intraday level since Feb. 21 at 1.3229, traded in a range of 1.3243 to 1.3303.

Global shares .WORLD slipped after top congressional Democrats and White House officials appeared to harden their stances on new coronavirus relief legislation on Wednesday.

The price of oil, one of Canada's major exports, was supported on Thursday by recent weakening of the U.S. dollar .DXY and falling U.S. crude inventories. U.S. crude CLc1 prices were up 0.8% at $42.54 a barrel.

Strategists are raising their forecasts for the Canadian dollar as commodity prices rise and the domestic economy shows signs of recovery, according to a Reuters poll.

Canada’s employment report for July is due on Friday. It could offer additional evidence of economic recovery after nearly 1 million jobs were added in June.

Housing sales volumes in the area of Toronto, Canada’s most populous city, soared to a monthly record in July as buyers came out in full force following a spring lull amid restrictions due to the COVID-19 pandemic, the Toronto Regional Real Estate Board (TRREB) said on Thursday.

Canadian government bond yields were lower across a flatter curve, with the 10-year CA10YT=RR down 4 basis points at 0.463%.

Reporting by Fergal Smith; Editing by Steve Orlofsky