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C$ slightly up vs broadly weak U.S. dollar

Credit: REUTERS/MARK BLINCH

The Canadian dollar was slightly higher against a broadly weaker U.S. dollar in choppy trading on Friday, in line with gains in other commodity currencies, as risk appetite improved with shares on Wall Street posting gains.

* Canadian dollar up 0.1% vs U.S. dollar

* Bond yields up across maturity curve

By Gertrude Chavez-Dreyfuss

NEW YORK, July 17 (Reuters) - The Canadian dollar was slightly higher against a broadly weaker U.S. dollar in choppy trading on Friday, in line with gains in other commodity currencies, as risk appetite improved with shares on Wall Street posting gains.

Earlier in the session, the commodity currencies traded modestly lower on the day, as crude oil prices slipped in the face of mounting uncertainty about the recovery in energy demand as new coronavirus cases surged.

In the mid-morning session, the Canadian dollar was up 0.1% at C$1.3569 per U.S. dollar . On the week, however, the Canadian dollar was up around 0.8%

Oil prices though remained lower. Brent crude futures fell 0.9% to $42.97 a barrel, while U.S. West Texas Intermediate (WTI) crude was down 0.7% at $40.46 per barrel.

"Oil looks like it could break out, but it hasn't done that just yet, so dollar/Canada looks like it's sitting between support and resistance," said Erik Bregar, head of FX strategy at Exchange Bank of Canada in Toronto.

"If we get some kind of catalyst that moves August crude oil prices decisively above $41 per barrel, that could be the next positive catalyst for the Canadian dollar to push it below $1.35 versus the U.S. dollar," he added.

In the bond market, Canadian government debt yields rose across the curve, with the two-year yield up at 0.28% from 0.265% late on Thursday.

The benchmark Canadian 10-year yield rose to 0.516% from Thursday's 0.504%. (Reporting by Gertrude Chavez-Dreyfuss Editing by Alistair Bell) ((gertrude.chavez@thomsonreuters.com; 646-301-4124; Reuters Messaging: rm://gertrude.chavez.reuters.com@reuters.net)) Keywords: CANADA FOREX/

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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