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CANADA FX DEBT-C$ hovers near 8-day low amid global recession worries

Published 2019-08-15, 03:59 p/m
CANADA FX DEBT-C$ hovers near 8-day low amid global recession worries
USD/CAD
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CL
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CA2YT=RR
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CA10YT=RR
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(Adds strategist quote and details throughout, updates prices)

* Canadian dollar trades nearly unchanged against the greenback

* Canada's non-farm payroll employment rises by 73,700 in July

* U.S. crude oil prices decrease by 1.4%

* Canada's 10-year yield hits a near three-year low at 1.084%

By Levent Uslu

TORONTO, Aug 15 (Reuters) - The Canadian dollar was little changed against its U.S. counterpart on Thursday but held close to an eight-day low hit earlier in the session on worries about the global economic outlook.

U.S. 30-year Treasury yields fell to a record low below 2%, 10-year notes dropped to a three-year trough and the 2-year yield hit its lowest level since October 2017 amid persistent fears about global trade tensions and economic slowdowns. yields have also fallen to multi-year lows and the yield curve has inverted the most in nearly two decades, which could coerce the Bank of Canada to cut interest rates rather than risk an economic downturn. are still very concerned about the price action in the U.S. bond markets and the pressure on yields," said Amo Sahota, director at Klarity FX in San Francisco. "It may cause dollar-CAD to push up."

Canada exports many commodities, including oil, making it vulnerable to a global economic slowdown.

At 3:27 p.m. (1927 GMT), the Canadian dollar CAD=D4 was trading nearly unchanged at 1.3321 to the greenback, or 75.07 U.S. cents. The currency touched its weakest intraday level since last Wednesday at 1.3339.

The loonie fell to an eight-day low despite domestic data showing non-farm payroll employment rose by 73,700 in July and that home sales climbed for a fifth consecutive month. prices were pressured by mounting recession concerns and a surprise boost in U.S. crude inventories. U.S. crude oil futures CLc1 settled 1.4% lower at $54.47 a barrel. government bond prices firmed across the yield curve in sympathy with U.S. Treasuries. The two-year CA2YT=RR rose 8.5 Canadian cents to yield 1.307% and the 10-year CA10YT=RR was up 47 Canadian cents to yield 1.096%.

The 10-year yield touched its lowest intraday level since October 2016 at 1.084%. It was trading 20.4 basis points below the 2-year yield, which was nearly the most that the curve has inverted since May 1999.

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