Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

CANADA FX DEBT-C$ hits 5-month low in choppy trading ahead of G20 summit

Published 2018-11-27, 03:48 p/m
© Reuters.  CANADA FX DEBT-C$ hits 5-month low in choppy trading ahead of G20 summit
USD/CAD
-
GM
-
MKC
-
CL
-
CA2YT=RR
-
CA10YT=RR
-
DXY
-

* Canadian dollar retreats 0.3 percent against the greenback

* Loonie touches its weakest since June 28 at 1.3328

* Price of U.S. oil falls 0.1 percent

* Canadian bond prices trade higher across the yield curve

By Fergal Smith

TORONTO, Nov 27 (Reuters) - The Canadian dollar weakened to its lowest in nearly five months against a broadly firmer greenback on Tuesday, as concern about world trade tensions led to fluctuation in financial markets ahead of the G20 Summit this week.

U.S. stocks and the price of oil seesawed after U.S. President Donald Trump's threat to move ahead with additional tariffs on Chinese goods dampened hopes of resolving the trade spat between the two countries. really doesn't seem like there is much clarity on what kind of trade relations we'll have after the G20," said Mark McCormick (NYSE:MKC), North American head of FX strategy at TD Securities. "I would say the Canadian dollar gets lumped into all of those negative forces."

Canada exports many commodities, including oil, and runs a current account deficit, so its economy could be hurt if the global flow of trade or capital slows.

U.S. crude oil futures CLc1 settled 0.1 percent lower at $51.56 a barrel. 3:30 p.m. (2030 GMT), the Canadian dollar CAD=D4 was trading 0.3 percent lower at 1.3295 to the greenback, or 75.22 U.S. cents. It touched its weakest level since June 28 at 1.3328.

The multi-month low for the loonie came after General Motors Co (NYSE:GM) GM.N announced on Monday it would close its plant in Oshawa, Ontario, east of Toronto. Capital Markets estimated that the closure would reduce Canadian gross domestic product by between 0.1 percent and 0.2 percent over a full year.

Canada's gross domestic product data for the third quarter is due on Friday.

The U.S. dollar .DXY reached two-week highs after Federal Reserve Vice Chair Richard Clarida backed further interest rate hikes, taking a less dovish stance than some investors had anticipated. government bond prices were higher across the yield curve, with the two-year CA2YT=RR up 3.5 Canadian cents to yield 2.221 percent and the 10-year CA10YT=RR rising 23 Canadian cents to yield 2.326 percent.

The 10-year yield touched its lowest intraday since Sept. 13 at 2.325 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.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.