April 27, 2020 / 7:47 PM / 3 months ago

CANADA FX DEBT-Loonie strengthens as lockdown easing boosts risk appetite

 (Adds strategist quote and details throughout, updates prices)
    * Canadian dollar rises 0.3% against the greenback
    * Loonie trades in a range of 1.4032 to 1.4117
    * Price of U.S. oil settles about 25% lower
    * Canadian government bond yields rise across the curve

    By Fergal Smith
    TORONTO, April 27 (Reuters) - The Canadian dollar
strengthened against its U.S. counterpart on Monday as improved
investor sentiment on news that more countries were looking to
ease coronavirus-related lockdowns countered a large drop in
crude oil prices.
    Countries from Italy to New Zealand have announced the
easing of lockdown restrictions and the Bank of Japan said it
was expanding its stimulus program, helping to boost global
stock markets         .             
    "Global risk sentiment is getting a boost to start the week
as traders focus on continued talk of plans to slowly reopen
economies around the world," Erik Bregar, head of FX strategy at
Exchange Bank of Canada, said in a note.
    Canada runs a current account deficit and is a major
exporter of commodities, including oil, so the loonie tends to
be sensitive to the global flow of trade and capital.
    At 3:10 p.m. (1910 GMT), the Canadian dollar          was
trading 0.3% higher at 1.4042 to the greenback, or 71.21 U.S.
cents. The currency, which last week fell 0.8%, traded in a
range of 1.4032 to 1.4117.
    Canada's death toll from the coronavirus grew by less than
10% for the eighth day in a row, data showed, and Canada's most
populous province, Ontario, unveiled guiding principles to
restart its economy.             
    U.S. crude oil futures        settled about 25% lower at
$12.78 a barrel, driven lower by skittish investors fleeing the
U.S. benchmark due to lack of available storage to deal with a
coronavirus-induced collapse in demand.             
    Canadian government bond yields rose across the curve, with
the 10-year             up 2.7 basis points at 0.609%.
    Canada's GDP report for February is due on Thursday but
could be too dated to guide expectations for further easing
measures from the Bank of Canada.

 (Reporting by Fergal Smith
Editing by Paul Simao and Chizu Nomiyama)
  
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