April 9, 2020 / 1:56 PM / 2 months ago

CANADA FX DEBT-Loonie shakes off record-breaking jobs loss as oil rallies

    * Canadian dollar rises 0.3% against the greenback
    * Canada sheds one million jobs in March
    * Price of U.S. oil increases 4.7%
    * Canadian bond yields fall across much of the curve

    TORONTO, April 9 (Reuters) - The Canadian dollar
strengthened against its U.S. counterpart on Thursday along with
gains for stocks and higher oil prices, with the currency
fluctuating after domestic data showed a record level of job
losses.
    At 9:36 a.m. (1336 GMT), the Canadian dollar        was
trading 0.3% higher at 1.3968 to the greenback, or 71.59 U.S.
cents. The currency, which on Tuesday touched an 11-day high at
1.3941, traded in a range of 1.3955 to 1.4076.        
    Canada shed one million jobs in March while the unemployment
rate soared to 7.8%, official data showed, as the coronavirus
outbreak forced the closure of non-essential businesses.
            
    Ottawa is rolling out more than C$200 billion in measures to
support the economy, while the Bank of Canada has slashed
interest rates to 0.25% and has begun quantitative easing, a
program of buying government bonds in large-scale.    
    The U.S. Federal Reserve has also been active. On Thursday,
it announced a massive $2.3 trillion program to bolster local
governments and businesses impacted by the coronavirus pandemic,
which boosted U.S. equity markets       .
    Canada runs a current account deficit and is a major
producer of commodities, including oil, so the loonie tends to
be sensitive to the global flow of trade and capital.
    U.S. crude        prices were up 4.7% at $26.26 a barrel on
expectations the world's leading crude producers will at a
meeting later in the day overcome obstacles that have so far
prevented a deal to cut output.             
    Canadian government bond yields were lower across much of
the curve, with the 10-year             down 1.8 basis points at
0.795%.

 (Reporting by Fergal Smith)
  
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