* The Canadian currency is down 0.4 percent against the US dollar.
* The price of oil in the United States falls by 0.5 percent.
* The 10-year yield in Canada falls 2.8 basis points to 1.373 percent.
Fergal Smith contributed to this article.
Reuters, TORONTO, July 6 – The Canadian currency fell for a second day versus the US dollar on Tuesday, as oil prices fell after reaching multi-year highs and the greenback rose broadly, with the loonie reversing much of Friday’s steep surge.
Oil, one of Canada’s main exports, fell in price as suppliers from the Organization of Petroleum Exporting Countries (OPEC), Russia, and others fought over supply plans to meet rising global demand.
The dollar gained momentum against a basket of major currencies after poor German economic data weighed on the euro. US oil prices were down 0.5 percent at $74.80 a barrel, while the currency gained ground against a basket of major currencies.
After falling 0.2 percent on Monday, the loonie was trading 0.4 percent down at 1.2390 to the greenback, or 80.71 US cents.
The euro gained about 1% on Friday, its highest advance in eight weeks, after the US nonfarm payrolls report suggested the Federal Reserve could wait before tightening monetary policy.
The minutes from the Fed’s June 15-16 policy meeting will be released on Wednesday, while the Canadian jobs data for June will be released on Friday.
Investors are expected to hold off on making big changes in the loonie until after the Fed minutes and the Canadian employment report, according to Scotiabank analysts, including Shaun Osborne.
The Canadian statistics could provide insight into the Bank of Canada’s policy outlook, with some analysts anticipating another drop in bond purchases at the central bank’s interest rate announcement next week.
A Bank of Canada survey released on Monday revealed that business sentiment in Canada is improving.
The 10-year Canadian government bond yield dropped 2.8 basis points to 1.373 percent, indicating a flatter curve.
(Fergal Smith contributed reporting, and Alison Williams edited the piece.)/n
