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CANADA FX DEBT-Canadian dollar firms despite signs of global economic slowdown

reuters.com · 09/01/2021 09:29
CANADA FX DEBT-Canadian dollar firms despite signs of global economic slowdown

Canadian dollar strengthens 0.2% against the greenback

Loonie trades in a range of 1.2580 to 1.2637

Price of U.S. oil falls 0.9%

Canadian bond yields ease across the curve

- The Canadian dollar strengthened against its U.S. counterpart on Wednesday as investors shrugged off economic data that pointed toward slowing global growth, with investors awaiting the U.S. nonfarm payrolls report later this week.

The loonie CAD= was trading 0.2% higher at 1.2590 to the greenback, or 79.43 U.S. cents. It traded in a range of 1.2580 to 1.2637.

Global factory activity lost momentum in August as the continuing coronavirus pandemic disrupted supply chains, raising concerns that faltering manufacturing would add to economic woes caused by slumping consumption, surveys showed. nL1N2Q30FL

But world stock markets climbed, with investors focusing on a likely continuation of massive central bank stimulus measures. nL4N2Q32FD

U.S. job figures are due on Friday, which could offer clues on the timing of the Federal Reserve's asset purchase tapering. The Bank of Canada is due to make an interest rate decision next week.

Data on Tuesday showed that Canada's economy unexpectedly shrank in the second quarter and again in July, putting the economy at the center of debate three weeks ahead of a national election. nL1N2Q210O

The price of oil, one of Canada's major exports, fell before an OPEC+ meeting at which the producer club is expected to stick to a plan to add 400,000 barrels per day each month to the end of December. nL1N2Q3047

U.S. crude CLc1 prices were down 0.9% at $67.9 a barrel, while Canadian government bond yields eased across the curve. The 10-year CA10YT=RR dipped 1.4 basis points to 1.204%.

(Reporting by Fergal Smith; editing by Jonathan Oatis)

((fergal.smith@thomsonreuters.com; +1 647 480 7446;))