TORONTO (Reuters) - The Canadian dollar retreated against a broadly higher U.S. dollar on Friday, as crude prices fell amid an excess supply of oil that has pushed global inventories higher.
The greenback, hurt by a series of mixed economic data, recouped some of the week’s losses against a basket of key currencies, despite further U.S. economic numbers on Friday that supported evidence the second quarter was off to a sluggish start for the world’s largest economy.
The loonie pared some of its losses following Canadian data, including March factory sales, but moves were marginal and brief.
The currency has tested the C$1.1940 level several times in recent sessions, but has failed to sustain any moves stronger.
* At 9:27 a.m. EDT, the Canadian dollar CAD=D4 was trading at C$1.2043 to the greenback, or 83.04 U.S. cents, softer than the Bank of Canada’s official close of C$1.1999, or 83.34 U.S. cents, on Thursday.
* Its strongest level of the session was C$1.1982, while its weakest level was C$1.206.
* Canadian manufacturing sales rebounded by 2.9 percent in March from February, helped by gains in the aerospace and auto sectors. This was stronger than the 1.2 percent rise economists had forecast.
* Foreign investment in Canadian securities jumped to C$22.47 billion in March, the biggest inflow since May 2012.
* In the United States, manufacturing activity growth in New York State accelerated to 3.09 in May from -1.19 in April. Despite the improvement, economists had been expecting a rise to 5.0 this month.
* U.S. industrial production fell for a fifth straight month, slipping 0.3 percent after a revised 0.3 percent drop in March. Economists were expecting a 0.1 percent rise.
* U.S. crude CLc1 prices were down 1.70 percent to $58.86, while Brent crude LCOc1 lost 1.17 percent to $65.92.[O/R]
* The Canadian dollar will likely trade between C$1.1980 and C$1.2075 against the U.S. dollar on Friday, according to National Bank Financial.
* Canadian government bond prices were higher across the maturity curve, with the two-year CA2YT=RR price up 0.5 Canadian cent to yield 0.669 percent and the benchmark 10-year CA10YT=RR rising 40 Canadian cents to yield 1.761 percent.
* The Canada-U.S. two-year bond spread was 11.3 basis points, while the 10-year spread was -43.9 basis points.
Reporting by Solarina Ho; Editing by Bernadette Baum