CANADA FX DEBT-Loonie edges lower as euro's slide filters through FX market

 (Adds strategist quotes and details throughout; updates prices)
    * Canadian dollar dips 0.1% against the greenback
    * Loonie trades in a range of 1.3241 to 1.3271
    * Canada's 10-year yield was nearly unchanged at 1.395%.

    By Fergal Smith
    TORONTO, Feb 13 (Reuters) - The Canadian dollar weakened
slightly against its U.S. counterpart on Thursday, giving up
some of the previous day's gains as coronavirus fears resurfaced
and recent declines in the euro worked their way through the
foreign exchange market.
    Stocks globally          fell after China reported 254 new
coronavirus deaths, double the previous day's toll, amplified
significantly by using new methods to confirm the virus.
            
    Concern that the virus would slow economic growth have
weighed on the prices of commodities, including oil       , one
of Canada's major exports.
    "We're all about coronavirus ... except that we had a new
theme in the foreign exchange market and that's German politics
and that's what seems to be a big part of the downward move in
the euro," said Greg Anderson, global head of foreign exchange
strategy at BMO Capital Markets in New York.
    Chances of an early election in Germany have risen after
Chancellor Angela Merkel's conservative protegee, Annegret
Kramp-Karrenbauer, gave up her ambitions for the top job.
            
    The euro        slumped on Thursday to its lowest level
against the greenback since April 2017. 
    "Usually, when EUR-USD moves it drags all other pairs with
it and particularly the longer it goes on the bigger it
becomes," Anderson said.
    At 4:27 p.m. (2127 GMT), the Canadian dollar          was
trading 0.1% lower at 1.3263 to the greenback, or 75.40 U.S.
cents. The currency, which on Wednesday notched a nine-day high
at 1.3237, traded in a range of 1.3241 to 1.3271.
    Bank of Canada Governor Stephen Poloz, speaking in
Melbourne, Australia, said Canada's economy was in a pretty good
place.             
    Last month, the central bank opened the door to an interest
rate cut should a recent slowdown in domestic growth persist.
But data since then has showed the economy adding more than
twice the number of jobs expected in January.
                        
    Canadian government bond yields were little changed across
the yield curve in sympathy with U.S. Treasuries on Thursday as
traders balanced worsening news about the coronavirus epidemic
with positive U.S. economic reports.             
    The 10-year yield was nearly unchanged at 1.395%.

 (Reporting by Fergal Smith; Editing by David Gregorio and Tom
Brown)
  

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