Canada's dollar on track for its biggest decline in eight months

120
2

Canadian dollar slid against the greenback Touched its weakest level since December 2015 at 1.2948 Price of U.S. oil falls 1.9% Canadian retail sales rise 4.2% in June By Fergal Smith TORONTO, Aug 20 - The Canadian Dollar weakened to its lowest level in eight months against the greenback on Friday and was on track for its biggest decline since March 2020 as the prospect of slowing global economic recovery weighed on investor sentiment. Global shares fell for a fifth consecutive day and the U.S. dollar remained firm in a flight to safety as rising coronavirus cases compounded concerns over China growth and the outlook for U.S. stimulus. Canada is a major exporter of commodities, including oil, so the loonie tends to be sensitive to the global economic outlook. U.S. crude oil futures fell for a seventh day, down 1.9% at $62.50 a barrel, while the Canadian dollar weakened 0.6% to 1.2902 per greenback, or 77.51 U.S. cents The currency touched its lowest intraday level since December of last at 1.2948. For the week, the industry was on track to drop 3%. Domestic sales showed that retail sales jumped by 4.2% from May in June, although a preliminary estimate for July was less promising with sales falling 1.7%. While the outlook for retail is getting cloudier in recent weeks, unfortunately, with case counts rising in recent weeks, Benjamin Reitzes, Canadian rates and macro strategist at BMO Capital Markets, said it in a note. Meanwhile, the United States extended the closure of its land borders with Canada and Mexico to non-essential travel such as tourism through Sept. 21 despite Ottawa's decision to open its border to vaccinated Americans. Canada's house prices will come off the boil next year, rising only modestly after a mini boom in the middle of the pandemic, according to a Reuters poll of property market analysts who still expect affordability to worsen in the coming years. Federal government bond yields edged lower across the curve, with the 10- year deficit down about half a basis point at 1.122%.