May 6, 2020 / 1:02 PM / 23 days ago

CANADA FX DEBT-Canadian dollar weakens as oil stumbles, greenback gains

    * Canadian dollar weakens 0.4% against the greenback
    * Price of U.S. oil decreases 5.2%
    * Loonie trades in a range of 1.4023 to 1.4108
    * Canadian bond yields rose across a flatter curve

    TORONTO, May 6 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Wednesday as a rally in the
price of oil, one of Canada's major exports, lost some momentum
and the greenback broadly climbed.    
    The U.S. dollar        rose against a basket of major
currencies as a court decision challenging German participation
in the euro zone's stimulus program weighed on the euro. 
            
    U.S. crude oil futures        were down 5.2% at $23.29 a
barrel, pulling back from a near four-week high earlier in the
session, as a report showing a higher-than-expected rise in U.S.
inventories offset hopes for a recovery in demand as some
countries ease coronavirus lockdowns.             
    At 8:29 a.m. (1229 GMT), the Canadian dollar          was
trading 0.4% lower at 1.4101 to the greenback, or 70.92 U.S.
cents. The currency traded in a range of 1.4023 to 1.4108.
    The decline for the loonie came as a report showed U.S.
private employers laid off more than 20 million workers in
April. Canada sends about 75% of its exports to the United
States.             
    Canada's jobs report for April is due on Friday. Economists
are looking for employment to plunge by four million as
non-essential business activity shut down across the country,
adding to a jobs decline of one million in March.    
    Canadian bond yields rose across a flatter curve, with the
2-year up 2.4 basis points at 0.335%.    

 (Reporting by Fergal Smith; Editing by Bernadette Baum)
  
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