April 30, 2020 / 1:31 PM / a month ago

CANADA FX DEBT-Canadian dollar pulls back from 6-week high as stocks slip

    * Canadian dollar dips 0.1% against the greenback
    * Loonie notches a six-week high at 1.3850
    * Price of U.S. oil increases 11.3%
    * Canada's economy was flat in February 

    TORONTO, April 30 (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          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        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             eased 1.4 basis
points to 0.552%.

 (Reporting by Fergal Smith; Editing by Will Dunham)
  
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