May 22, 2020 / 1:30 PM / a month ago

CANADA FX DEBT-Canadian dollar slides as U.S.-China tensions weigh on oil prices

    * Canadian dollar weakens 0.5% against the greenback
    * Canadian retail sales fall by 10% in March
    * Price of U.S. oil decreases 2.7%
    * Canadian bond yields were mixed across a flatter curve

    TORONTO, May 22 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Friday as oil prices fell and
domestic data showed a record decline in retail sales, with the
loonie giving back some of this week's rally.
    At 9:09 a.m. (1309 GMT), the Canadian dollar          was
trading 0.5% lower at 1.4025 to the greenback, or 71.30 U.S.
cents. The currency, which was on track to rise 0.4% for the
week, traded in a range of 1.3945 to 1.4039.
    The price of oil, one of Canada's major exports, fell as
tensions rose between the United States and China, and doubts
grew about the pace of demand recovery from the coronavirus
crisis. U.S. crude        prices were down 2.7% at $33 a barrel.
            
    Canadian retail sales fell by 10% in March from February as
the economy started feeling the effects of the coronavirus
pandemic, while the advance results for April indicate a near
16% decline, Statistics Canada said.             
    Ottawa is rolling out more than C$300 billion in fiscal
measures to support Canada's economy, while the Bank of Canada
has slashed interest rates to near zero and begun its first ever
large-scale bond-buying program.
    On Thursday, Bank of Canada Governor Stephen Poloz said he
felt Canada was still on track to meet the best-case scenario
for recovery that the central bank released in April, where
growth shrinks by 15% in the second quarter compared with the
fourth quarter of 2019.             
    Canadian government bond yields were mixed across a flatter
curve, with the 10-year yield             down 2.4 basis points
at 0.524%.

 (Reporting by Fergal Smith; Editing by Steve Orlofsky)
  
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