CANADA FX DEBT-Canadian dollar slides as Chinese lockdowns weigh on sentiment
Reuters
Published Jan 15, 2021 09:45
* Canadian dollar falls 0.7% against the greenback
* Price of U.S. oil decreases 1.6%
* Canadian home sales rise 7.2% in December from November
* Canadian bond yields ease across much of a flatter curve
TORONTO, Jan 15 (Reuters) - The Canadian dollar weakened against its U.S. counterpart on Friday, giving back this week's gains, as rising COVID-19 cases in China crimped risk appetite, while domestic data showed home sales surging to a record in December.
Global shares .WORLD and the price of oil CLc1 , one of Canada's major exports, fell as China reported the highest number of daily COVID-19 cases in more than 10 months. U.S. crude oil futures CLc1 were down 1.6% at $52.69 a barrel. worry that lockdowns to curb rising infections could hamper global economic recovery, while uncertainty over how easily Democrats will be able to get their proposals through the U.S. Senate limited the market impact of President-elect Joe Biden's proposed $1.9 trillion stimulus package. Canadian dollar was trading 0.7% lower at 1.2722 to the greenback, or 78.60 U.S. cents, having pulled back from a near three-year high on Wednesday at 1.2621. For the week, the loonie was on track to weaken 0.3%.
Canadian home sales rose 7.2% in December from November, setting a new record amid a surge in demand in the Toronto and Vancouver areas, the Canadian Real Estate Association said. housing market has benefited from record-low interest rates set by the Bank of Canada. The central bank is due to make an interest rate decision next week. government bond yields were lower across much of a flatter curve in sympathy with U.S. Treasuries. The 10-year CA10YT=RR was down 3.6 basis points at 0.820%, having pulled back from its highest in nearly 10 months at 0.887% on Tuesday.
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Written By: Reuters
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