April 8, 2020 / 1:49 PM / 4 months ago

CANADA FX DEBT-Canadian dollar weakens as coronavirus weighs on housing data

    * Canadian dollar falls 0.2% against the greenback
    * Canadian housing starts fall 7.3% in March
    * Price of U.S. oil rises 2.5%
    * Canada's 10-year yield trades near unchanged at 0.819%

    TORONTO, April 8 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Wednesday, giving back some of
the previous day's gains as domestic housing data showed signs
of economic damage from the coronavirus outbreak.
    Canadian housing starts fell 7.3% in March from the previous
month in a sign that the coronavirus outbreak began to hit
residential construction activity, data from the national
housing agency showed.             
    The value of Canadian building permits has likely fallen
23.2% year-over-year in March, Statistics Canada said in a
preliminary flash estimate.
    At 9:24 a.m. (1324 GMT), the Canadian dollar        was
trading 0.2% lower at 1.4024 to the greenback, or 71.31 U.S.
cents. The currency, which touched on Tuesday an 11-day high at
1.3941, traded in an range of 1.3988 to 1.4081.
    A rebound in world stock markets          lost some momentum
as the coronavirus death toll mounted and euro zone finance
ministers failed to agree a rescue package to help economies
recover from the impact of the outbreak.
    Canada will keep up efforts to persuade the United States
not to block the export of medical supplies to fight the
coronavirus, Prime Minister Justin Trudeau said on Tuesday,
while the energy-producing province of Alberta warned of an
economic disaster.             
    Oil, one of Canada's major exports, was supported by hopes
that a meeting between OPEC members and allied producers on
Thursday will trigger output cuts to shore up prices that have
collapsed due to the coronavirus pandemic. U.S. crude       
prices were up 2.5% at $24.23 a barrel.              
    Canadian government bond yields were mixed across the curve,
with the 10-year             nearly unchanged at 0.819%.
    Canada's jobs report for March is due on Friday.

 (Reporting by Fergal Smith; Editing by David Gregorio)
  
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