June 15, 2020 / 7:25 PM / 24 days ago

CANADA FX DEBT-Canadian dollar recovers from 2-week low as Wall Street rallies

 (Adds economist quote and details throughout, updates prices)
    * Canadian dollar rises 0.2% against the greenback
    * Canadian factory sales decrease by 28.5% in April from
March
    * Price of U.S. oil gains 2.4%
    * Canadian bond yields trade mixed across a flatter curve

    By Fergal Smith
    TORONTO, June 15 (Reuters) - The Canadian dollar
strengthened against its U.S. counterpart on Monday, with the
currency rebounding from an earlier two-week low as a rally on
Wall Street overshadowed domestic data showing a
deeper-than-expected plunge in April factory sales.
    The loonie        was trading 0.2% higher at 1.3557 to the
greenback, or 73.76 U.S. cents. The currency, which fell 1.2%
last week, touched its weakest intraday level since June 1 at
1.3685.
    "I think the loonie has just been following the overall
sentiment in the markets," said Hendrix Vachon, a senior
economist at Desjardins.        
    Wall Street jumped following an announcement by the U.S.
Federal Reserve regarding its corporate bond purchasing program
that boosted investor confidence, which had been wavering amid a
spike in new COVID-19 cases.             
    The price of oil, one of Canada's major exports, rose as
signs fuel demand was recovering and that OPEC+ members were
complying with a production cut deal outweighed fears that new
coronavirus infections could further slow the global economy.
U.S. crude oil futures        settled 2.4% higher at $37.12 a
barrel.                    
    Canadian factory sales fell by 28.5% in April from March on
a record decrease in motor vehicle assembly, as well as a
decline in petroleum and coal products, Statistics Canada said.
Analysts had forecast a 20% decrease in the value of shipments.
            
    Separate data, from the Canadian Real Estate Association,
showed that Canadian home sales rebounded by a record 56.9%
month-over-month in May, when lockdowns to help contain the
coronavirus pandemic eased, after plunging in April.
            
    Canadian government bond yields were mixed across a flatter
curve, with the 10-year             down 1.8 basis points at
0.516%. The 10-year yield touched its lowest intraday since May
15 at 0.468%. 

 (Reporting by Fergal Smith; Editing by Nick Zieminski and Peter
Cooney)
  
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