(Adds strategist’s quotes and details throughout; updates
* Canadian dollar falls 0.2% against greenback
* Canadian retail sales rise 0.6% in July
* Price of U.S. oil settles 0.3% higher
* Canadian bond yields edge higher across the curve
By Fergal Smith
TORONTO, Sept 18 (Reuters) – The Canadian dollar weakened
against its U.S. counterpart on Friday as a sell-off in
technology shares weighed on investor sentiment and domestic
data showed a drop in underlying retail sales, with the loonie
falling for the second straight week.
The Canadian currency was trading 0.2% lower at
1.3193 to the greenback, or 75.80 U.S. cents, having traded in a
range of 1.3137 to 1.3208. For the week, the loonie was down
“I think it is just a reflection of broad market risk,” said
Bipan Rai, North America head of FX strategy at CIBC Capital
Markets. “The Canadian dollar this year has taken its cue from
what’s been going on outside its borders.”
U.S. stocks turned lower in volatile trading as worries
about rising coronavirus cases and a patchy economic recovery
dampened risk sentiment, with technology-related stocks
reversing early gains to extend their declines to a third
Canada runs a current account deficit and is a major
exporter of commodities, including oil, so the loonie tends to
be sensitive to the global flow of trade and capital.
U.S. crude oil futures settled 0.3% higher at $41.11
a barrel, extending this week’s rally after Saudi Arabia pressed
allies to stick to production quotas.
Canadian retail and wholesale sales both rose in July and
were higher than before the coronavirus pandemic struck,
Statistics Canada said, pointing to further evidence of a
partial economic recovery.
Still, the 0.6% gain for retail sales was much more modest
than the advance in June, while core retail sales, which exclude
sales at motor vehicle and parts dealers and gasoline stations,
Canadian government bond yields edged higher across the
curve, with the 10-year up half a basis point at
(Reporting by Fergal Smith; Editing by Paul Simao)
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Keywords: CANADA FOREX/ (UPDATE 1)
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