July 30, 2020 / 7:23 PM / 7 days ago

CANADA FX DEBT-Canadian dollar slides to 1-week low, weighed by lower oil prices

 (Adds dealer comment and details throughout, updates prices)
    * Canadian dollar falls 0.8% against the greenback
    * Loonie touches its weakest since July 22 at 1.3459
    * Canada's 10-year yield hits its lowest level since May 15

    By Fergal Smith
    TORONTO, July 30 (Reuters) - The commodity-linked Canadian
dollar fell to a one-week low against its U.S. counterpart on
Thursday as a drop in oil prices offset broad-based weakness for
the greenback.
    The loonie        was trading 0.8% lower at 1.3441 to the
greenback, or 74.40 U.S. cents. The currency touched its weakest
intraday level since July 22 at 1.3459.
    The U.S. dollar        fell against a basket of major
currencies after U.S. President Donald Trump raised the
possibility of delaying the nation's Nov. 3 presidential
election, and it is on track for its worst monthly performance
in a decade as the spread of the coronavirus continues to weigh
on the U.S. economy.             
    The loonie was unable to take advantage because of a weaker
greenback because of the slide in oil prices, said Tony Valente,
a senior FX dealer at AscendantFX.
    U.S. crude        prices settled 3.3% lower at $39.92 a
barrel as U.S. political uncertainty and data showing the U.S.
economy suffered its steepest contraction since the Great
Depression weighed. Oil is one of Canada's major exports.
                        
    Trump has approved the existing Keystone pipeline to ship
29% more Canadian crude into the U.S. Midwest and Gulf Coast
after TC Energy Corp's          decade-old expansion project was
stalled again this month by legal hurdles.                     
    Easing of COVID-19 restrictions are not yet reflected in May
payroll employment, with the number of Canadians receiving pay
from their employer falling by 4.1%, data from Statistics Canada
showed.
    Canada's GDP report for May is due on Friday. It is expected
to show some economic recovery after a sharp contraction in
April.
    Canadian government bond yields were lower across the curve
in sympathy with U.S. Treasuries on Thursday. The 10-year
            fell 3.1 basis points to 0.448%, which was about its
lowest since May 15.

 (Reporting by Fergal Smith
Editing by Alistair Bell and Jonathan Oatis)
  
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below