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CANADA FX DEBT-Canadian dollar holds near 4-week low in wake of ratings cut

 (Adds dealer quotes and details throughout; updates prices)
    * Canadian dollar trades near flat against the greenback
    * Canadian consumer confidence climbs in June
    * Price of U.S. oil increases 3.1%
    * Canada's 10-year yield rises 1.2 basis points

    By Fergal Smith
    TORONTO, June 29 (Reuters) - The Canadian dollar was little
changed against the greenback on Monday, holding near its
weakest level since the start of June as the lingering impact of
a ratings downgrade offset evidence that Canada's economy is
recovering from the coronavirus crisis.       
    The Canadian dollar        was trading nearly unchanged at
1.3689 to the greenback, or 73.05 U.S. cents. The currency
traded in a range of 1.3646 to 1.3704, after having touched on
Friday its weakest intraday level since June 1 at 1.3715.
    "I think the CAD is still hungover from last week's
sovereign rating cut from AAA by Fitch," said Tony Valente,
senior FX dealer at AscendantFX.
    Fitch last Wednesday cut Canada's rating to "AA+" from
"AAA," making it the first time since August 2004 that the
ratings agency did not give Canada top marks. Canada had been
one of a handful of countries with a AAA rating from all three
of the main agencies.             
    Quarter-end rebalancing may also have weighed on the loonie
but the pressure is likely to be temporary, Valente said.
    Asset managers sometimes trade assets at the end of a
quarter to bring their holdings closer to a target weighting.
    The Conference Board of Canada's Index of Consumer
Confidence rose 16 points to 79.7 in June as the country
continued to reopen from COVID-19 imposed lockdowns, while data
from Statistics Canada showed that the value of Canadian
building permits rose by 20.2% in May from April.               
 
    Wall Street rose as investors clung to hopes of a
stimulus-backed economic rebound, while the price of oil       ,
one of Canada's major exports, settled 3.1% higher at $39.70 a
barrel.                                       
    Canada's 10-year yield             rose 1.2 basis points to
0.521%.
    Canada's GDP data for April is due on Tuesday, which could
help guide expectations for further Bank of Canada stimulus
measures.

 (Reporting by Fergal Smith; Editing by Steve Orlofsky and Sonya
Hepinstall)
  
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