(Adds strategist comments and details throughout; updates
* Canadian dollar falls 0.2% against greenback
* Loonie touches its strongest intraday since Sept. 21 at
* Canada’s exports, imports both fall in August
* Canadian bond yields ease across a flatter curve
By Fergal Smith
TORONTO, Oct 6 (Reuters) – The Canadian dollar weakened
against the greenback on Tuesday as investor hopes for U.S.
stimulus receded and data showed a slowdown in Canada’s
merchandise trade, with the loonie pulling back from an earlier
two-week high despite climbing oil prices.
U.S. stocks fell sharply after President Donald Trump said
he was calling off negotiations with Democratic lawmakers on
coronavirus relief legislation until after the November
Canada sends about 75% of its exports to the United States,
including oil. U.S. crude oil futures settled 3.7% higher
at $40.67 a barrel, supported by U.S. supply disruptions caused
by an approaching hurricane in the Gulf of Mexico.
“Something that has been evident in the last month or so is
that the path of least resistance for USD-CAD has been higher,”
said Simon Harvey, FX market analyst for Monex Europe and Monex
“This has continued in today’s session, evidenced by the
loonie following the broad G10 move lower against the (U.S.)
dollar on a day where WTI rallies back above $40,” Harvey said.
The Canadian dollar was trading 0.2% lower at 1.3290
to the greenback, or 75.24 U.S. cents. It touched its strongest
level since Sept. 21 at 1.3242 before turning lower.
Since the beginning of September, the loonie has fallen
Canada’s exports and imports both fell in August, hinting
that the momentum of the recovery from the COVID-19 crisis could
have slowed more than anticipated, data from Statistics Canada
Separate data showed that home sales in the area of Toronto,
Canada’s most-populous city, rose 42% from a year ago, lifted by
low borrowing costs and pent-up demand.
Canada’s employment report for September is due on Friday.
Canadian government bond yields were lower across a flatter
curve on Tuesday, with the 10-year falling 4.6 basis
points to 0.579%.
(Reporting by Fergal Smith; Editing by Peter Cooney)
((email@example.com; +1 416 941 8113;))
Keywords: CANADA FOREX/ (UPDATE 1)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.