Canadian dollar pulls back from six-week high as stocks slip

TORONTO (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Thursday, pulling back from an earlier six-week high, as the rally in global shares lost some momentum and domestic data showed no economic growth in February.

At 9:15 a.m. (1315 GMT), the Canadian dollar was trading 0.1% lower at 1.3893 to the greenback, or 71.98 U.S. cents. The currency notched its strongest intraday level since March 16 at 1.3850, while it was on track to rise 1.2% for the month.

Global stocks <.WORLD> dipped as the European Central Bank (ECB) kept much of its remaining policy powder dry, preparing for a long fight against the coronavirus pandemic's fallout. Still, stocks were headed for sharp gains this month, supported by encouraging early results from a COVID-19 treatment trial.

Canada runs a current account deficit and is a major exporter of commodities, including oil, so the domestic economy tends to be dependent on the global flow of trade and capital.

The Canadian economy was flat in February as rotating teacher strikes in Ontario and disruptions in transportation and warehousing stalled the economy, Statistics Canada said. Analysts had forecast a 0.1% increase.

U.S. crude oil futures (CLc1) were up 11.3% at $16.76 a barrel, lifted by signs the U.S. crude glut is not growing as quickly as expected and indications of a rise in fuel demand, which has been crushed by the pandemic.

Canadian hospitals had beds to spare as the country hit 50,373 confirmed coronavirus cases on Wednesday, and several provinces were relaxing public health measures, but health experts were already worrying about a future wave of infections.

Canadian government bond yields were mixed across a flatter curve on Thursday. The 10-year yield (CA10YT=RR) eased 1.4 basis points to 0.552%.