* Canadian dollar weakens 0.2% against the greenback
* Teranet data shows home prices rising 2.7% in June from
May
* Price of U.S. oil falls 1.8%
* Canadian 10-year yield eases 2.9 basis points to 1.118%
TORONTO, July 20 (Reuters) – The Canadian dollar edged lower
against its U.S. counterpart on Tuesday as worries that the
spread of the Delta coronavirus variant could impede global
economic recovery helped to underpin the safe-haven greenback
and pressured oil prices.
Canada is a major producer of oil, which slumped to its
lowest level in nearly two months on concern that rising
COVID-19 infections could cause demand to weaken again just when
OPEC+ has decided to increase supply.
U.S. crude prices were down 1.8% at $65.21 a barrel,
while the U.S. dollar gained ground against a basket of major
currencies.
The Canadian dollar weakened 0.2% to 1.2772 to the
greenback, or 78.30 U.S. cents, after trading in a range of
1.2733 to 1.2786. On Monday, it touched a five-month low at
1.2807.
In domestic data, the Teranet-National Bank Composite House
Price Index rose 2.7% in June from May, with the pace of annual
gains accelerating to a record level of 16%.
The Canadian retail sales report for May is due on Friday,
which can guide expectations for the Bank of Canada policy
outlook.
Last week, the central bank took a mostly optimistic stance
on the country’s economy, saying the threat of the COVID-19
pandemic had largely passed while warning inflation would remain
hot in the near-term.
Canadian government bond yields fell across much of a
flatter curve, tracking the move in U.S. Treasuries. The 10-year
was down 2.9 basis points at 1.118%, after touching
on Monday its lowest intraday level in five months at 1.097%.
(Reporting by Fergal Smith; editing by Barbara Lewis)
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