Canadian dollar falls by most in 4 months as investors eye peak growth

* Canadian dollar weakens 0.9% against the greenback

* Touches its weakest level since April 23 at 1.2494

* Price of U.S. oil settles 2.4% lower

* Canadian 10-year yield hits a 4-month low at 1.307%

By Fergal Smith

TORONTO, July 6 (Reuters) - The Canadian dollar fell to a two-month low against its broadly stronger U.S. counterpart on Tuesday, as oil prices tumbled and investors weighed signs that the pace of global economic recovery is peaking.

Canada is a major exporter of commodities, including oil, so the loonie has benefited this year from the global economy's rebound from the coronavirus crisis.

"There is a school of thought that you sell the recovery trade when the pace of growth peaks," said Adam Button, chief currency analyst at ForexLive. "The pace of growth from Q3 onwards will decelerate."

A gauge of activity on the U.S. services sector showed moderate growth in June, down from the record pace in May, while oil pulled back from a multi-year high as OPEC+ producers clashed over plans to increase supply.

U.S. crude futures CLc1 settled down 2.4% at $73.37 a barrel, while the Canadian dollar was trading 0.9% lower at 1.2456 to the greenback, or 80.28 U.S. cents, its biggest decline since Feb. 26. It touched its weakest level since April 23 at 1.2494.

Among G10 currencies, only the Norwegian crown NOK= fell more. Norway is also a major oil producer.

The U.S. dollar .DXY rallied against a basket of major currencies ahead of Wednesday's release of the minutes from the Federal Reserve's June meeting. The meeting resulted in a surprise shift to more hawkish guidance from the central bank.

The Canadian jobs report for June is due on Friday which could offer clues on the Bank of Canada policy outlook. Some analysts expect the BoC to cut bond purchases again at next week's interest rate announcement.

Canadian bond yields fell across a flatter curve, tracking the move in U.S. Treasuries. The 10-year CA10YT=RR touched its lowest since Feb. 24 at 1.307% before recovering slightly to 1.328%, down 7.3 basis points on the day.
Reporting by Fergal Smith in Toronto Editing by Alison Williams and Matthew Lewis

免責聲明: XM Group提供線上交易平台的登入和執行服務,允許個人查看和/或使用網站所提供的內容,但不進行任何更改或擴展其服務和訪問權限,並受以下條款與條例約束:(i)條款與條例;(ii)風險提示;(iii)完全免責聲明。網站內部所提供的所有資訊,僅限於一般資訊用途。請注意,我們所有的線上交易平台內容並不構成,也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。


本網站的所有XM和第三方所提供的内容,包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接,皆爲‘按原狀’,並作爲一般市場評論所提供,而非投資建議。請理解和接受,所有被歸類為投資研究範圍的相關内容,並非爲了促進投資研究獨立性,而根據法律要求所編寫,而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊,相關詳情請點擊 這裡查看。

我們運用 cookies 提供您最佳之網頁使用經驗。更改您的cookie 設定跟詳情。

風險提示: 您的資金存在風險。杠杆商品可能不適合所有客戶。 請詳細閱讀我們的風險聲明