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

Loonie holds near 7-week low as China virus threatens economic growth

Published 2020-01-28, 09:52 a/m
© Reuters.  Loonie holds near 7-week low as China virus threatens economic growth
USD/CAD
-
CL
-
CA2YT=RR
-
CA10YT=RR
-

* Canadian dollar trades near flat against the greenback

* Loonie touches its lowest intraday level since Dec. 11 at 1.3206

* Price of U.S. oil falls 0.3%

* Canada's 10-year yield hits its lowest in more than three months

TORONTO, Jan 28 (Reuters) - The Canadian dollar was little changed against the greenback on Tuesday, holding close to its weakest level in nearly seven weeks as investors worried that China's spreading coronavirus would drag on global economic activity.

Canada is a major exporter of commodities, including oil, so its economy could be hurt by a slowdown in the global economy.

U.S. crude oil futures CLc1 were down 0.3% at $52.99 a barrel amid fears that the coronavirus, which has claimed over 100 lives in China, might weigh on oil demand. 9:44 a.m. (1444 GMT), the Canadian dollar CAD=D4 was trading nearly unchanged at 1.3189 to the greenback, or 75.82 U.S. cents. The currency touched its weakest intraday level since Dec. 11 at 1.3206.

On Monday, Canada's minority Liberal government kicked off the ratification process for the United States-Mexico-Canada Agreement (USMCA) trade pact and urged opposition lawmakers to formally approve the deal as quickly as possible. Canada sends about 75% of its exports to the United States. gross domestic product data for November is due on Friday, which could help guide expectations for a Bank of Canada interest rate cut.

Last week, the central bank left its benchmark interest rate steady at 1.75%, as expected, but said a future cut was possible should a recent slowdown in domestic growth persist. government bond prices were lower across the yield curve in sympathy with U.S. Treasuries. The two-year CA2YT=RR fell 2.9 Canadian cents to yield 1.458% and the 10-year CA10YT=RR was down 8.8 Canadian cents to yield 1.314%.

The 10-year yield touched its lowest intraday level since Oct. 8 at 1.283%.

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.