CANADA FX DEBT-C$ rises for third straight week as investors cheer economic restoration

(Adds strategist quotes and facts during; updates prices)
Canadian greenback trades discontinuance to flat against the greenback
Loonie rises 0.6% for the week
Canadian retail gross sales leap 23.7% in June
Canada’s 10-yr yield hits a 10-day low at 0.540%

By Fergal Smith
TORONTO, Aug 21 (Reuters) – The Canadian greenback became once little
changed against a broadly stronger greenback on Friday as
investors rewarded the currency for ongoing signs of business
restoration from the coronavirus crisis, with the loonie advancing
for the third straight week.
Canadian retail gross sales rose by a account 23.7% in June, rising
above February ranges for the principle time since shutdowns tied to
the virus, Statistics Canada said.
A staggered reopening from lockdowns, supported by fiscal
stimulus, is likely paying off for Canada’s economy, with
activity forecast to rebound within the most modern quarter twice as
like a flash as within the United States, its ideally suited trading accomplice by
a ways.
“Canada is doing in actuality properly on the COVID-19 in contrast to the
U.S. and Europe,” said Greg Anderson, global head of international
change strategy at BMO Capital Markets in Contemporary York. “It makes
sense it is seemingly you’ll maybe perchance take a look at the currency birth as a lot as rally on both fronts as a
end result of that.”
The euro fell as an August batch of replace surveys
pointed to a stuttering economic restoration, while the U.S. greenback
climbed, notching its first weekly upward thrust since mid-June,
and the worth of oil settled 1.1% lower at $42.34 a
barrel. Oil is one of Canada’s major exports.
The Canadian greenback became once trading almost unchanged at
1.3188 to the greenback, or 75.83 U.S. cents. The currency,
which on Wednesday posted its strongest intraday level in almost
seven months at 1.3131, traded in a form of 1.3159 to 1.3234.
For the week, the loonie became once up 0.6% in spite of the replacement
of Canada’s finance minister amid friction over spending
policies. On Thursday, Ottawa launched measures that can add
billions of bucks to spending, along with the extension of an
emergency profits-strengthen program.
Canada’s 10-yr yield eased higher than 2 basis
aspects on Friday, touching its lowest intraday level since Aug.
11 at 0.540%.

(Reporting by Fergal Smith; Making improvements to by Kirsten Donovan and
Andrea Ricci)

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