(Adds quotes and strategist details throughout, updates pricing)
* The Canadian dollar weakens 0.1% against the greenback
* Highest touch since May 5 at 1.2777
* The price of US oil settles up 0.9%
* Canadian bond yields fall across the curve
By Fergal Smith
TORONTO, May 20 (Reuters) – The Canadian dollar edged lower against its U.S. counterpart on Friday, falling back from a two-week high as volatility in global stock markets boosted demand for the safe-haven greenback. .
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“What we’re seeing in all the volatility in the markets over the past few days is that there’s this safe-haven bid for the US dollar,” said Royce Mendes, director and head of macro strategy at Desjardins.
The US dollar rose against a basket of major currencies and US equities came close to confirming a bear market, after major retailers this week contributed to fears of a slowing economy.
Meanwhile, the price of oil, one of Canada’s top exports, settled up 0.9% to $113.23 a barrel as the European Union’s planned ban on Russian oil countered concerns about growth.
“The Canadian dollar appears to be untethered from oil prices,” Mendes said. “It’s not that surprising given that we don’t hear about a lot of ground investment in the oilfield.”
Speculators raised their bearish bets on the Canadian dollar to the highest since October, according to data from the US Commodity Futures Trading Commission. As of May 17, net short positions had risen to 14,496 contracts from 5,407 the previous week.
Still, the loonie gained 0.6% for the week, ending a seven-week losing streak, after warmer-than-expected Canadian inflation data on Wednesday put pressure on the Bank of Canada to quit. she is rapidly tightening her policy.
Canadian bond yields fell across the curve in a shortened session ahead of the Victoria Day holiday on Monday. The 10 years
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