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Canadian dollar gains as risk appetite climbs on easing lockdowns

Published 2020-04-27, 09:35 a/m
© Reuters.
USD/CAD
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CL
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CA10YT=RR
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* Canadian dollar rises 0.3% against the greenback

* Loonie trades in a range of 1.4040 to 1.4117

* Price of U.S. oil decreases about 26%

* Canadian government bond prices mixed across the curve

TORONTO, April 27 (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Monday as additional stimulus measures to ease the economic pain of the coronavirus pandemic and some countries' plans to loosen lockdown restrictions bolstered investor sentiment globally.

Stock markets .WORLD rallied after the Bank of Japan pledged to buy an unlimited amount of bonds and Italy's prime minister announced that factories and building sites could reopen from May 4 and family visits also would be permitted. runs a current account deficit and is a major exporter of commodities, including oil, so the loonie tends to be sensitive from the global flow of trade and capital.

At 9:21 a.m. (1321 GMT), the Canadian dollar CAD=D4 was trading 0.3% higher at 1.4055 to the greenback, or 71.15 U.S. cents. The currency, which last week fell 0.8%, traded in a range of 1.4040 to 1.4117.

Canada's top medical official said on Sunday she was encouraged the coronavirus death toll was slowing while Prime Minister Justin Trudeau said isolation measures to fight the outbreak should remain for the time being. crude oil futures CLc1 were down about 26% at $12.50 a barrel on concerns about scarce storage capacity and global economic doldrums from the coronavirus pandemic. have slightly increased their bearish bets on the Canadian dollar, data from the U.S. Commodity Futures Trading Commission showed on Friday. As of April 20, net short positions had increased to 23,891 contracts from 23,760 in the prior week.

Canadian government bond yields were mixed across the curve, with the 10-year CA10YT=RR nearly unchanged at 0.584%.

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