April 23, 2020 / 8:24 PM / a month ago

CANADA FX DEBT-Canadian dollar gains as oil settles about 20% higher

 (Adds strategist quotes and details throughout; updates prices)
    * Canadian dollar rises 0.7% against the greenback
    * Price of U.S. oil increases by nearly 20%
    * Loonie trades in a range of 1.40 to 1.4200
    * Canadian bond yields trade mixed across a flatter curve

    By Fergal Smith
    TORONTO, April 23 (Reuters) - The Canadian dollar
strengthened against its U.S. counterpart on Thursday as
investor sentiment got a boost from higher prices for crude oil,
one of Canada's major exports, and the prospect of further
economic stimulus.
    At 3:49 p.m. (1949 GMT), the Canadian dollar          was
trading 0.7% higher at 1.4060 to the greenback, or 71.12 U.S.
cents. The currency, which on Tuesday hit a near three-week low
at 1.4263, traded in a range of 1.40 to 1.42.
    The loonie is benefiting from a pickup in global market
sentiment, said Simon Harvey, FX market analyst for Monex Europe
and Monex Canada.    
    World stock markets          edged higher as investors
weighed a rebound in oil prices and prospects for more 
government stimulus, although gains were crimped by a report
that an experimental antiviral drug for the coronavirus flopped
in its first randomized clinical trial.             
            
    U.S. crude oil futures        settled 19.7% higher at $16.50
a barrel, spurred by the promise of more government stimulus, as
well as rising tensions in the Middle East and output cuts by
producing nations to tackle oversupply.             
    "The oil industry still sits in a state of ruins in Canada
at present prices," Harvey said. "Even a substantial pickup in
crude ... will still leave the industry's prior investment plans
in tatters."
    Canada's export credit agency said on Wednesday it would
backstop loans to hard-hit oil and gas producers, in the latest
move by Ottawa to free up credit for the energy industry.
            
    Ottawa is rolling out more than C$200 billion ($142 
billion) in measures to support Canada's economy, while the Bank
of Canada has slashed interest rates by 150 basis points since
March and begun buying Government of Canada bonds.
    Potential Bank of Canada governor candidate Jean Boivin
plans to stay at BlackRock Inc        , a spokeswoman for the
global investment manager said.                 
    Canadian government bond yields were mixed across a flatter
curve on Thursday. The 10-year             eased 2.3 basis
points to 0.593%.


($1 = 1.4069 Canadian dollars)

 (Reporting by Fergal Smith; Editing by Jonathan Oatis and Peter
Cooney)
  
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below