🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

Canadian dollar dips as data shows economic scarring of shutdowns

Published 2020-06-18, 10:07 a/m
© Reuters. A Canadian dollar coin, commonly known as the "Loonie", is pictured in this illustration picture taken in Toronto
CL
-
ADP
-
CA10YT=RR
-

TORONTO (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Thursday as investors worried about a potential second wave of the coronavirus pandemic and after domestic data showed a record plunge in wholesale trade for the month of April.

Canadian wholesale trade fell 21.6% in April from March, led by a decline in sales in the motor vehicles and motor vehicle parts and accessories subsector as a result of shutdowns related to the coronavirus outbreak, Statistics Canada said.

Separate data, from payroll services provider ADP (NASDAQ:ADP), showed that Canada added 208,400 jobs in May, when lockdowns to help contain the pandemic began to ease. Still, there was a downward revision to April data to show 2,361,714 jobs were lost.

Global stocks fell as an increase in new coronavirus cases in some U.S. states and China crushed hopes of a swift world economic comeback from the pandemic.

The price of oil, one of Canada's major exports, was pressured by worries about fuel demand. U.S. crude (CLc1) prices were down 0.2% at $37.89 a barrel.

The Canadian dollar was trading 0.1% lower at 1.3580 to the greenback, or 73.64 U.S. cents. The currency, which on Monday hit a two-week low at 1.3685, traded in a range of 1.3521 to 1.3608.

Bank of Canada Deputy Governor Lawrence Schembri is due to address the Greater Saskatoon Chamber of Commerce at 1:30 p.m. (1730 GMT). Data on Wednesday showing a surprise annual decline in the consumer price index has supported expectations for continued low interest rates.

© Reuters. A Canadian dollar coin, commonly known as the

Canadian government bond yields were mixed across a flatter curve on Thursday, with the 10-year yield (CA10YT=RR) down 1.9 basis points at 0.522%. On Monday, the 10-year yield hit a one-month low at 0.468%.

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.