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Canadian dollar firms ahead of Ottawa's 'fiscal snapshot'

Published 2020-07-08, 09:39 a/m
© Reuters.
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* Canadian dollar rises 0.1% against the greenback

* Loonie hits a six-day low intraday at 1.3623

* Price of U.S. oil unchanged at $40.62 a barrel

* Canadian bond yields mixed across steeper curve

TORONTO, July 8 (Reuters) - The Canadian dollar edged higher against its U.S. counterpart on Wednesday but stuck to a narrow range as investors globally weighed the risk of stalling economic recovery from the coronavirus crisis and ahead of a "fiscal snapshot" from Ottawa.

Canadian Finance Minister Bill Morneau is expected this afternoon to outline the current balance sheet, with the Globe and Mail reporting that a deficit of more than C$300 billion would be forecast. is rolling out more than C$170 billion of direct aid to support the economy during the coronavirus pandemic and a government source says it is eyeing issuing longer-term debt to take advantage of low interest rates.

Global stocks .WORLD faltered as an increase in new coronavirus cases in some parts of the world undermined prospects for a quick economic recovery. prices were broadly stable for a fourth session, with rising U.S. crude stockpiles and an increase in U.S. coronavirus infections arresting a recent recovery sparked by easing lockdowns. U.S. crude CLc1 prices were unchanged at $40.62 a barrel. Canadian dollar CAD= was trading 0.1% higher at 1.3585 to the greenback, or 73.61 U.S. cents. The currency touched its weakest intraday level since last Thursday at 1.3623.

Canada's jobs report for June is due on Friday, which could help guide expectations for further stimulus measures from the Bank of Canada. The central bank is due to make an interest rate announcement and present updated economic projections next week.

Canadian government bond yields were mixed across a steeper curve, with the 10-year CA10YT=RR up less than a basis point at 0.521%.

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