(Adds economist comments and details throughout; updates
* Canadian dollar falls 0.2% against the greenback
* Price of U.S. oil settles 4.3% lower
* The loonie gains 0.6% for the week
* Canadian bond yields trade mixed across a steeper curve
By Fergal Smith
TORONTO, Oct 2 (Reuters) – The Canadian dollar weakened
against the greenback on Friday as U.S. political uncertainty
pressured Wall Street and oil prices, but the loonie still
gained ground on the week, overcoming a rise in domestic
The loonie was trading 0.2% lower at 1.3309 to the
greenback, or 75.14 U.S. cents, having traded in a range of
1.3277 to 1.3330. For the week, the loonie was up 0.6%.
The rising number of COVID 19 cases in Canada hampered the
loonie earlier this week but the currency has benefited from a
pull back in the U.S. dollar, said Hendrix Vachon, a senior
economist at Desjardins.
Direction for the currency is mostly being driven by “the
USD trend” and risk appetite, Vachon said.
The S&P 500 was lower as news that U.S. President Donald
Trump tested positive for COVID-19 put investors in a risk-off
mood and added to mounting uncertainties surrounding the looming
Investors also weighed data showing U.S. job growth slowed
more than expected in September. Canada sends about 75% of its
exports to the United States, including oil. U.S. crude oil
futures settled 4.3% lower at $37.05 a barrel.
Canada’s Quebec province reported more than 1,000 new
COVID-19 cases on Friday, a resurgence of infections despite
recent measures aimed at limiting social gatherings blamed for
the pick up among residents under the age of 30.
Still, the Canadian dollar is set to gain ground against its
U.S. counterpart in a year as an expected recovery in the global
economy from the coronavirus crisis improves the outlook for
commodity prices, a Reuters poll showed.
Canadian government bond yields were mixed across a steeper
curve on Friday, with the 10-year up 1 basis point
(Reporting by Fergal Smith
Editing by Nick Zieminski and Sandra Maler)
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Keywords: CANADA FOREX/ (UPDATE 1)
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