🍎 🍕 Less apples, more pizza 🤔 Have you seen Buffett’s portfolio recently?Explore for Free

Canadian dollar recovers from 10-day low after record jobs gain

Published 2020-07-10, 04:10 p/m
© Reuters.
USD/CAD
-
GILD
-
CL
-
CA30YT=RR
-

* Canadian dollar trades near flat against the greenback

* Loonie touches its weakest level since June 30 at 1.3631

* Canada adds 952,900 jobs in June

* Canada-U.S. 30-year spread widens by 2.5 basis points

By Fergal Smith

TORONTO, July 10 (Reuters) - The Canadian dollar was little changed against its U.S. counterpart on Friday, recovering from an earlier 10-day low as higher oil and stock prices, as well as domestic data showing a record jobs gain offset worries about global trade prospects.

Canada's economy added 952,900 jobs in June, mostly in the service sector, as firms reopened following closures triggered by COVID-19, data from Statistics Canada showed. Economists had expected an increase of 700,000. stocks rose as a positive update from Gilead Sciences Inc 's GILD.O antiviral drug to treat COVID-19 countered nerves over a record rise in coronavirus cases in the United States. price of oil, one of Canada's major exports, rose after the International Energy Agency (IEA) bumped up its 2020 demand forecast. crude oil futures CLc1 settled 2.4% higher at $40.55 a barrel, while the loonie CAD= was trading nearly unchanged at 1.3590 to the greenback, or 73.58 U.S. cents. It touched its weakest intraday level since June 30 at 1.3631.

U.S. President Donald Trump said he is not currently thinking about negotiating a "Phase 2" trade deal with China. news knocked commodity currencies, such as the loonie, lower but was unlikely to have a lasting impact because investors were already skeptical that a "Phase 2" deal would be reached, said Bipan Rai, North America head, FX strategy at CIBC Capital Markets.

For the week, the loonie declined 0.3%.

Canada's 30-year yield CA30YT=RR eased 2.5 basis points further below the yield on 30-year U.S. Treasury bonds to a spread of 25.9 basis points as the Bank of Canada announced an increase in the amount of 30-year bonds it would purchase in its quantitative easing program to C$600 mln.

On Wednesday, the 30-year yield spiked after Ottawa said it would be "significantly increasing" issuance of long-term bonds.

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.