August 23, 2019 / 8:55 PM / 2 months ago

CANADA FX DEBT-C$ steadies as risk aversion offsets this week's domestic data

 (Adds strategist quote and details throughout, updates prices)
    * Canadian dollar trades little changed against the
greenback
    * Canada's retail sales were unchanged in June
    * U.S. oil prices decrease by 2.1%
    * Bond prices move higher across the yield curve

    By Levent Uslu
    TORONTO, Aug 23 (Reuters) - The Canadian dollar was little
changed against its U.S. counterpart on Friday as this week's
stronger-than-expected domestic data was offset by reduced
investor appetite for risk.
    U.S. stocks plunged in a broad sell-off as China and the
United States traded their latest salvos in a prolonged trade
war.             
    Canada exports many commodities, including oil, so its
economy could be hurt by a slowdown in the flow of global trade.
    Data this week showed Canada retail sales in June and
inflation in July both beat expectations.
                        
    "We are really struggling to see the Canadian dollar picking
up benefit from this week's data which has been quite
significantly better than expected," said Shaun Osborne, chief
currency strategist at Scotiabank. "Some focus obviously on
trade and risk aversion seems to be spilling over to the CAD to
some extent."
    The Canadian dollar          was trading nearly unchanged at
1.3296 to the greenback, or 75.21 U.S. cents at 4:23 p.m.
ET(2023 GMT). The currency was down 0.2% for the week.
    Meanwhile, the price of oil, one of Canada's major exports
fell on Friday on worsening trade tensions. U.S. crude oil
futures settled 2.1% lower at $54.17 a barrel.             
    Canadian government bond prices were higher across the yield
curve, with the two-year            up 17.5 Canadian cents to
yield 1.379% and the 10-year             rising 111 Canadian
cents to yield 1.175%.

 (Reporting by Levent Uslu; editing by Jonathan Oatis and Tom
Brown)
  
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