Final hours! Save up to 50% OFF InvestingProCLAIM SALE

Canadian dollar gains as hopes rise of coronavirus slowdown

Published 2020-04-06, 09:35 a/m
© Reuters.
USD/CAD
-
CL
-

* Canadian dollar rises 0.4% against the greenback

* Loonie trades in a range of 1.4081 to 1.4261

* Price of U.S. oil decreases 3.5%

* Canadian bond yields rise across the curve

TORONTO, April 6 (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Monday as signs of a slowdown in coronavirus-related deaths bolstered investors sentiment, offsetting lower oil prices.

Stocks globally .WORLD rose as the death toll from the virus slowed across major European nations including France and Italy. runs a current account deficit and is a major producer of commodities, including oil, so the loonie tends to be sensitive to the global flow of trade and capital.

U.S. crude oil futures CLc1 were down 3.5% at $27.35 a barrel after Saudi Arabia and Russia delayed a meeting to discuss output cuts that could help to reduce global oversupply. 9:01 a.m. (1301 GMT), the Canadian dollar CAD=D4 was trading 0.4% higher at 1.4138 to the greenback, or 70.73 U.S. cents. The currency traded in a range of 1.4081 to 1.4261.

Speculators have cut their bearish bets on the Canadian dollar, data from the U.S. Commodity Futures Trading Commission showed on Friday. As of March 31, net short positions had fallen to 21,929 contracts from 29,245 in the prior week.

The Bank of Canada is due to release the spring issue of the Business Outlook Survey at 10:30 a.m. (1430 GMT). To support Canada's economy and the financial system during the virus outbreak, the central bank has slashed interest rates to 0.25%, embraced quantitative easing for the first time, buying government bonds in large quantities, and introduced a gamut of liquidity measures.

Those liquidity measures could be helping, with the one-month rate for bankers' acceptances, a key funding market, falling on Monday for the seventh straight day to 1.13%.

Still, the number of people killed by the coronavirus in Canada jumped by just over 20% to 258 in a day, officials said on Sunday, while Ottawa offered full-time jobs to reservists in the armed forces. government bond yields rose across the curve in sympathy with U.S. Treasuries. The 10-year was up 2.4 basis points at 0.737%.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.