CANADA FX DEBT-C$ weakens as evidence mounts of slower growth

Published 2016-05-20, 10:16 a/m
© Reuters.  CANADA FX DEBT-C$ weakens as evidence mounts of slower growth
USD/CAD
-
CA2YT=RR
-
CA10YT=RR
-

* Canadian dollar at C$1.3125, or 76.19 U.S. cents
* Bond prices slightly lower across the maturity curve

By Fergal Smith
TORONTO, May 20 (Reuters) - The Canadian dollar edged lower
against its U.S. counterpart on Friday after
weaker-than-expected retail sales data added to evidence that
the economy slowed heading into the second quarter.
Canadian retail sales fell 1 percent in March, exceeding
economists' forecasts for a decrease of 0.6 percent, as
consumers bought fewer cars, while separate data from Statistics
Canada showed that core inflation rose to 2.2 percent.
{nL2N18H0FT]
The mixed data leaves the Bank of Canada on hold next week,
keeping a watch on the wildfire in Alberta, said David Watt,
chief economist at HSBC Bank Canada, who expects the central
bank to ease before year end as lack of momentum in the economy
becomes more evident.
Economists say second-quarter growth may slow to a
standstill, impacted by a wildfire that has cut production in
Alberta's oil sands.
Firefighters battling a massive blaze in Canada's energy
heartland could see a second day of rainfall and winds, expected
to beat flames back from key oil sands facilities, as a producer
announced a restart in operations.
Canadian Prime Minister Justin Trudeau suggested on Thursday
that a C$30 billion budget deficit was not a hard limit as the
government's focus should be on spurring economic growth.

At 9:56 a.m. EDT (1356 GMT), the Canadian dollar CAD=D4
was trading at C$1.3125 to the greenback, or 76.19 U.S. cents,
slightly weaker than Thursday's close of C$1.3105, or 76.31 U.S.
cents.
The currency's strongest level of the session was C$1.3077,
while its weakest was C$1.3133. On Thursday, the loonie touched
its weakest in nearly six weeks of C$1.3155.
Canadian government bond prices were slightly lower across
the maturity curve in sympathy with U.S. Treasuries. The
two-year CA2YT=RR price dipped 1.5 Canadian cents to yield
0.633 percent and the benchmark 10-year CA10YT=RR declined 15
Canadian cents to yield 1.364 percent.
On Thursday, the 10-year yield touched its highest in
two-weeks of 1.394 percent.

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.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.