February 6, 2020 / 3:56 PM / 11 days ago

CANADA FX DEBT-Canadian dollar nears two-month low ahead of key jobs report

    * Canadian dollar weakens 0.1% against the greenback
    * Loonie trades in a range of 1.3271 to 1.3296
    * Price of U.S. oil decreases 0.9%
    * Canada's 10-year yield touches a near two-week high at
1.403%

    TORONTO, Feb 6 (Reuters) - The Canadian dollar edged lower
against its U.S. counterpart on Thursday, approaching a
two-month low it hit the previous day as investors awaited
domestic jobs data that could help guide Bank of Canada interest
rate expectations.
    Canada's employment report for January is due on Friday. In
2019, employment increased by 1.7% but all of the job gains were
in the first three quarters of the year.
    Last month, the Bank of Canada opened the door to an
interest rate cut should recent weakness in the domestic economy
persist.                 
    At 9:40 a.m. (1440 GMT), the Canadian dollar          was
trading 0.1% lower at 1.3294 to the greenback, or 75.22 U.S.
cents. The currency, which on Wednesday hit a two-month low at
1.3304, traded in a range of 1.3271 to 1.3296.
    The loonie will climb over the coming year, recouping much
of its recent decline, as the economic threat from the
coronavirus outbreak in China likely fades, and some analysts do
not expect the Bank of Canada to cut interest rates in 2020, a
Reuters poll of analysts showed.                 
    The price of oil, one of Canada's major exports, gave up
early gains on Thursday despite potential action from the OPEC+
group of producers to counter an expected fall in oil demand as
a consequence of the coronavirus outbreak. U.S. crude oil
futures        were down 0.9% at $50.32 a barrel.             
    Stocks          rose globally as China's plan to chop
additional tariffs on some American goods by 50% helped ease
fears over the financial fallout of the coronavirus epidemic.
                
    Canadian government bond yields were mixed across the yield
curve. The 10-year yield was nearly unchanged at 1.387%, after
earlier in the day touching its highest level since Jan. 24 at
1.403%.

 (Reporting by Fergal Smith; editing by Jonathan Oatis)
  
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