⏳ Final hours! Save up to 60% OFF InvestingProCLAIM SALE

CANADA FX DEBT-C$ hits a 6-week low on trade tensions, lower exports

Published 2019-08-02, 10:57 a/m
© Reuters.  CANADA FX DEBT-C$ hits a 6-week low on trade tensions, lower exports
USD/CAD
-
CL
-
CA2YT=RR
-
CA10YT=RR
-

* Canadian dollar falls 0.2% against the greenback

* Canada's June exports fall 5.1%

* Price of U.S. oil increases by 3.3%

* Bond prices move higher across the yield curve

TORONTO, Aug 2 (Reuters) - The Canadian dollar weakened to a six-week low against its U.S. counterpart on Friday after domestic data showed a decrease in exports and as investors weighed the prospect of additional U.S. tariffs on Chinese goods.

Canada posted a narrower trade surplus in June as exports fell by 5.1%. It was the first drop for exports since February and reversed a big increase in May. exports many commodities, including oil, so its economy could be hurt by an escalation of trade tensions. On Thursday, U.S. President Donald Trump said he would slap 10% tariffs on $300 billion of Chinese imports starting Sept. 1. 10:21 a.m. (1421 GMT), the Canadian dollar CAD=D4 was trading 0.2% lower at 1.3245 to the greenback, or 75.50 U.S. cents. The currency hit its lowest intraday since June 20 at 1.3265.

Meanwhile, the price of oil, one of Canada's major exports, rose on Friday, regaining some ground after its biggest fall in years on the escalation of trade tensions. U.S. crude oil futures CLc1 were up 3.3% at $55.73 a barrel. government bond prices were higher across the yield curve in sympathy with U.S. treasuries. The two-year CA2YT=RR rose 4 Canadian cents to yield 1.456% and the 10-year CA10YT=RR was up 9 Canadian cents to yield 1.387%.

The 10-year yield hits its lowest intraday level since November 2016 at 1.355%.

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.