(Provides strategist quotes and particulars; updates costs)
(Provides strategist quotes and particulars; updates costs)
* Canadian greenback weakens 0.5% towards the dollar
* For the week, the loonie dips 0.1%
* Canadian retail gross sales develop by 0.4% in October
* Canadian bond yields commerce combined throughout a flatter curve
By Fergal Smith
TORONTO, Dec 18 (Reuters) – The Canadian greenback weakened to
an eight-day low towards the dollar as buyers weighed
prospects of U.S. coronavirus reduction and home information confirmed
fading retail gross sales momentum, with merchants reserving some revenue
within the forex after a current run greater.
The loonie was buying and selling 0.5% decrease at 1.2789 to the
dollar, or 78.19 U.S. cents, having hit its weakest intraday
degree since Dec. 10 at 1.2798.
On Tuesday, the loonie notched a 2-1/2-year excessive at 1.2684.
The forex’s subsequent pullback left it down 0.1% for the
week, its first decline in 5 weeks.
The Canadian greenback’s rally “is working out of puff right here a
little bit,” mentioned Shaun Osborne, chief forex strategist at
Scotiabank. “It appears to me as if we’re seeing a little bit of
year-end revenue taking.”
The U.S. greenback consolidated losses after per week of
declines that pushed it to its lowest in 2-1/2 years, whereas Wall
Road retreated from document highs as a coronavirus reduction
package deal remained in focus forward of a weekend deadline.
Canada sends about 75% of its exports to america,
together with oil , which settled 1.5% greater at $49.10 a
barrel as buyers targeted on the rollout of COVID-19 vaccines
and seemed previous rising case numbers and tighter lockdowns in
Europe.
Canadian retail gross sales grew by 0.4% in October, surpassing
estimates for a 0.2% enhance, information from Statistics Canada
confirmed. It was the sixth straight month-to-month achieve, however a flash
estimate confirmed that gross sales in November have been comparatively
unchanged.
“Momentum in Canadian retail gross sales proved resilient in
October, however that power appears to have light in November,”
Royce Mendes, a senior economist at CIBC Capital Markets, mentioned
in a observe.
Canadian authorities bond yields have been combined throughout a flatter
curve, with the 10-year almost unchanged at 0.741%.
(Reporting by Fergal Smith; Enhancing by Kirsten Donovan and
Jonathan Oatis)
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Key phrases: CANADA FOREX/ (UPDATE 1)
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