July 30, 2020 / 2:32 PM / 15 days ago

CORRECTED-CANADA FX DEBT-Canadian dollar slides to 1-week low as oil falls 5%

 (Corrects bullet to show low was 1.3453 not 1.3432)
    * Canadian dollar falls 0.8% against the greenback
    * Loonie touches its weakest since July 22 at 1.3453
    * Canada's 10-year yield hits its lowest level since May 15

    TORONTO, July 30 (Reuters) - The commodity-linked Canadian
dollar weakened to a one-week low against its U.S. counterpart
on Thursday as oil prices fell and data showed the U.S. economy
suffered its steepest contraction since the Great Depression in
the second quarter.
    Canada sends about 75% of its exports to the United States,
including oil. U.S. crude        prices were down 5% at $39.19 a
barrel, as surging coronavirus infections around the world
threatened to jeopardise a recovery in fuel demand just as major
oil producers are set to raise output.              
    A stalemate on U.S. fiscal support added to investor
worries, with shares globally          falling just one day
after the Federal Reserve's pledge to use all its tools to
support the U.S. economy.             
    U.S. gross domestic product collapsed at a 32.9% annualized
rate last quarter as business activity came to an abrupt halt
due to efforts to slow the virus outbreak.             
    The Canadian dollar        was trading 0.8% lower at 1.3445
to the greenback, or 74.38 U.S. cents. The currency touched its
weakest intraday level since July 22 at 1.3453.
    Easing of COVID-19 restrictions not yet reflected in May
payroll employment, with the number of Canadians receiving pay
from their employer falling by 4.1%, data from Statistics Canada
showed.
    Canada's GDP report for May is due on Friday. It is expected
to show some recovery in the economy after a sharp contraction
in April.
    Canadian government bond yields were lower across the curve
in sympathy with U.S. Treasuries on Thursday. The 10-year
            was down 1.5 basis points at 0.464%, having touched
its lowest intraday level since May 15 at 0.453%.

 (Reporting by Fergal Smith
Editing by Alistair Bell)
  
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