CANADA’S FX DEBT – Canadian dollar retreats ahead of Business Outlook Survey

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* The Canadian dollar weakens 0.3% against the greenback * The loonie is trading in a range of 1.2311 to 1.2360 * The price of US oil increases by 0.2% * Canadian bond yields rise on steeper curve TORONTO, July 5 (Reuters) – The Canadian dollar weakened on Monday, as attention turned to the publication of the summer issue of the Business Outlook Survey for the Bank of Canada, as the loonie returned part of Friday’s rally. The loonie was trading down 0.3% to 1.2354 against the greenback, or 80.95 cents US, having traded in a range of 1.2311 to 1.2360. On Friday, the currency posted its biggest gain in eight weeks, advancing nearly 1%, after some details on the U.S. non-farm payroll suggested the Federal Reserve could wait before gradually reducing asset purchases or to raise rates. The Business Outlook Survey is due for release at 10:30 a.m. (2:30 p.m. GMT) on Monday. This could offer clues to the Bank of Canada’s policy outlook, with some analysts expecting the bank to cut back on bond purchases again when the policy is announced next week. Global stocks held on to record highs, capped by concerns over the Delta variant of COVID-19. Trading was smoother than usual, with US markets closed for the extended July 4th weekend in the United States. The price of oil, one of Canada’s main exports, has been pushed up by a disagreement within OPEC + over production policy. US crude prices rose 0.2% to $ 75.33 per barrel. Canadian government bond yields were higher on a steeper curve. The 10-year rose 3.2 basis points to 1.406%, after hitting its lowest level since March 3 at 1.358% earlier. (Report by Fergal Smith edited by Mark Heinrich)



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