CANADA FX DEBT-Canadian dollar pares its weekly advance as oil slides

Canadian dollar falls 0.2% towards the dollar
Loonie is heading within the actual path to rise 0.4% for the week
Canadian retail sales jump 23.7% in June
Canada’s 10-year yield hits a 10-day low at 0.540%

TORONTO, Aug 21 (Reuters) – The Canadian dollar weakened
towards its U.S. counterpart on Friday as oil costs fell and
home recordsdata confirmed a jump in retail sales that was as soon as about in
line with expectations, but the loonie stayed heading within the actual path for its
third straight weekly advance.
Canadian retail sales grew by 23.7% in June from Would possibly possibly possibly possibly maybe furthermore fair on
larger sales at motor automobile and substances dealers and dresses
outlets, Statistics Canada said. Nonetheless a flash estimate
suggested some lack of momentum in July, with sales estimated to
rise 0.7%.
Stocks globally fell for a third straight day as
European shopping managers’ index releases painted a muted
economic outlook, while U.S. rude oil futures were down
nearly 2% at $41.97 a barrel. Oil is belief to be one of Canada’s vital
exports.
The Canadian dollar was as soon as shopping and selling 0.2% lower at 1.3214
to the dollar, or 75.68 U.S. cents. The foreign money, which on
Wednesday posted its strongest intraday stage in nearly seven
months at 1.3131, traded in a unfold of 1.3159 to 1.3227.
For the week, the loonie was as soon as up 0.4%.
Canada is extending an emergency COVID-19 earnings-give a clutch to
program by four weeks to the dwell of September, and initiating put on
Sept. 27 this could well possibly maybe possibly furthermore offer unemployment advantages to a total bunch of
hundreds of individuals that wouldn’t on the total qualify, a senior
real said on Thursday.
The total value of the original measures is estimated at about
C$37 billion over the next year. The budget deficit this fiscal
year is forecast to hit C$343.2 billion, which will be the
supreme shortfall since World War Two.
Canadian authorities bond yields were lower for the duration of mighty of a
flatter curve in sympathy with U.S. Treasuries on Friday. The
10-year yield fell 2.2 basis aspects to 0.540%, its
lowest since Aug. 11.

(Reporting by Fergal Smith; Editing by Kirsten Donovan)

Leave a Reply

Your email address will not be published. Required fields are marked *