The Canadian dollar weakened against its U.S. counterpart on Thursday as investors worried about rising coronavirus cases and domestic data showed a record plunge in wholesale trade, but the currency stuck to its recent trading range.
The Canadian dollar was trading 0.3 per cent lower at 1.3608 to the greenback, or 73.49 U.S. cents, but was among the better-performing G10 currencies.
The loonie “hasn’t faded as much as commodity cousins AUD and NZD,” said Greg Anderson, global head of foreign exchange strategy at BMO Capital Markets in New York. “Flows have been light and this is just a listless in-range move.”
The currency, which on Monday hit a two-week low at 1.3685, traded in a range of 1.3521 to 1.3616.
Canadian wholesale trade fell 21.6 per cent in April from March, weighed by shutdowns related to the coronavirus outbreak, Statistics Canada said.
Separate data, from payroll services provider ADP, showed that Canada added 208,400 jobs in May, when lockdowns to help contain the pandemic began to ease. Still, there was a downward revision to April data to show 2,361,714 jobs were lost.
The Bank of Canada sees the Canadian economy facing a prolonged and uneven recuperation period with households remaining cautious with their spending until there is a coronavirus vaccine, Deputy Governor Lawrence Schembri said.
Global stocks fell as an increase in new coronavirus cases in some U.S. states and China crushed hopes of a swift world economic comeback from the pandemic.
The price of oil, one of Canada’s major exports, rose as a panel of OPEC and its allies met to review record oil supply cuts. U.S. crude oil futures settled 2.3 per cent higher at $38.84 a barrel.
Canadian government bond yields were lower across a flatter curve, with the 10-year yield down 1.8 basis points at 0.523 per cent.
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