(Adds dealer quotes and details throughout; updates prices)
* Loonie trades in a range of 1.2529 to 1.2594
* Price of U.S. oil settles 2.3% higher
* Canadian bond yields ease across a flatter curve
By Fergal Smith
TORONTO, July 22 (Reuters) – The Canadian dollar was little
changed against the greenback on Thursday, with the currency
holding on to gains over the last two days as oil rose and ahead
of data that could offer clues on the domestic economy’s
strength coming out of lockdowns.
The loonie was trading nearly unchanged at 1.2558 to
the greenback, or 79.63 U.S. cents, after trading in a range of
1.2529 to 1.2594.
“I think tomorrow is going to be the important day for
USD-CAD,” said Michael Goshko, corporate risk manager at Western
Union Business Solutions. “We will finally get a little bit of
clarity on just how well the Canadian economy is emerging from
the third wave.”
Analysts expect retail sales data on Friday to show a 3%
decline in May from April. A preliminary estimate for June, when
some provinces loosened pandemic-related restrictions, could
also be released.
Last week, the Bank of Canada took a mostly optimistic
stance on the country’s economy, saying the threat of the
COVID-19 pandemic had largely passed.
Still, investors have been weighing in recent days whether
the spreading Delta variant could impede global economic
recovery. On Monday, the Canadian dollar hit a five-month low at
Oil, one of Canada’s major exports, extended strong gains
made in previous sessions on expectations of tighter supplies
until the end of the year. U.S. crude futures settled
2.3% higher at $71.91 a barrel.
Canadian government bond yields eased across a flatter
curve, tracking the move in U.S. Treasuries. The 10-year
was down 3.1 basis points at 1.191% but holding well
above the five-month low it hit on Monday at 1.097%.
(Reporting by Fergal Smith; editing by Barbara Lewis and
Jonathan Oatis)
Read More