July 3, 2020 / 6:57 PM / a month ago

CANADA FX DEBT-Canadian dollar, 'stuck in a range,' clings to weekly gain

 (Adds details on Canadian prime minister and updates prices)
    * Canadian dollar trades near unchanged against the
greenback
    * For the week, the loonie advances 0.9%
    * Price of U.S. oil decreases 0.8%
    * Canadian bond yields trade mixed across a flatter curve

    By Fergal Smith
    TORONTO, July 3 (Reuters) - The Canadian dollar was little
changed against its U.S. counterpart on Friday, holding on to
this week's rally as it kept to a narrow trading range with U.S.
markets closed in observance of Independence Day.
    The loonie        was trading nearly unchanged at 1.3564 to
the greenback, or 73.72 U.S. cents. It traded in a range of
1.3553 to 1.3580. For the week, it was up 0.9%.
    "The CAD appears to be stuck in a range ... in the absence
of any major domestic developments," strategists at Scotiabank,
including Shaun Osborne, said in a note.
    It is "supported near 1.37 but better offered near 1.35,"
the strategists said.    
    The loonie has been supported this week by evidence the
economy is recovering from the coronavirus crisis, including
data on Thursday showing that exports climbed 6.7% in May.
    But investors are wary of a surge of new coronavirus
infections that has prompted U.S. states to delay and in some
cases reverse plans to let stores reopen and activities resume.
    Canada sends about 75% of its exports to the United States,
including oil.
     U.S. crude        prices were down 0.8% at $40.32 a barrel
as the resurgence of coronavirus cases raised concern fuel
demand growth could stall.              
    Canadian Prime Minister Justin Trudeau said he was still
unsure whether he would go to Washington D.C. next week to
celebrate a new North American trade treaty, citing concern
about possible U.S. tariffs on aluminum.              
    Ottawa will present an economic and fiscal snapshot next
week, while Canada's employment report for June is due and the
Bank of Canada will release its Business Outlook Survey.
    Canadian government bond yields were mixed across a flatter
curve, with the 10-year             little changed at 0.560%.

 (Reporting by Fergal Smith
Editing by Chizu Nomiyama and Chris Reese)
  
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