CANADA FX DEBT-Canadian dollar set for weekly gain as economy rebounds

07/30/2021 | 09:53am

* Canadian dollar rises 0.1% against the greenback
* For the week, the loonie is on track to gain 1%
* Flash estimate shows Canada's economy expanding 0.7% in
June
* Canadian bond yields were mixed across the curve

TORONTO, July 30 (Reuters) - The Canadian dollar edged up
against its U.S. counterpart on Friday, with the currency
holding onto this week's gains as a preliminary estimate showed
Canada's economy rebounding in June.
The loonie was trading 0.1% higher at 1.2431 to the
greenback, or 80.44 U.S. cents, after trading in a range of
1.2427 to 1.2472.
It was on track to advance for the second straight week,
with a gain of 1%, as dovish remarks by the U.S. Federal Reserve
took the steam out of a month-long rally for the U.S. dollar.

For the month, the loonie was down 0.3%.
The Canadian economy most likely expanded by 0.7% in June as
businesses reopened after shutdowns imposed to help fight the
coronavirus pandemic, Statistics Canada said. The economy shrank
by 0.3% in May, matching a forecast by analysts.
The price of oil, one of Canada's major exports, was also on
track to post a weekly gain, with demand growing faster than
supply and vaccinations expected to alleviate the impact of a
resurgence in COVID-19 infections across the globe. U.S. crude
prices were up 0.1% at $73.7 a barrel.
Canadian government bond yields were mixed across the curve,
with the 10-year up half a basis point at 1.211%.
The Canadian bond market is due to close early ahead of the
Civic Holiday on Monday.

(Reporting by Fergal Smith; editing by Emelia Sithole-Matarise)


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