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Canadian dollar finds some support as Wall Street rallies

Published 2020-09-28, 10:18 a/m
© Reuters. A Canadian dollar coin, commonly known as the "Loonie", is pictured in this illustration picture taken in Toronto
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TORONTO (Reuters) - The Canadian dollar edged higher against its broadly weaker U.S. counterpart on Monday as stock markets rose globally, with the loonie finding some support after posting three straight weekly declines.

Wall Street rallied following the longest weekly losing streak in a year for the S&P 500 (SPX) and the Dow (DJI), while the U.S. dollar (DXY) pulled back from a two-month high against a basket of major currencies. [nL8N2GP33Z]

The Canadian dollar was trading 0.1% higher at 1.3370 to the greenback, or 74.79 U.S. cents. The currency, which on Thursday hit a seven-week low at 1.3418, traded in a range of 1.3361 to 1.3403.

The price of oil, one of Canada's major exports, added to this month's decline as rising coronavirus cases continued to spur concerns about demand. U.S. crude (CLc1) prices were down 0.6% at $40.03 a barrel. [nL4N2GP0GJ]

Speculators have raised their bearish bets on the Canadian dollar for the first time in five weeks, data from the U.S. Commodity Futures Trading Commission showed on Friday. As of Sept. 22, net short positions had increased to 18,882 contracts from 16,943 in the prior week.

Canadian government bond yields were mixed across a steeper curve, with the 10-year (CA10YT=RR) up about half a basis point at 0.549%.

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

Canada's GDP data for July is due on Wednesday, which could help guide expectations for the strength of economic recovery.

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