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(Includes attribution in 4th paragraph) * Canadian dollar weakens 0.1% against greenback * Loonie gains 0.3% for the week * Flash estimate shows Canadian retail sales up 4.4% in June * Canadian bond yields were little changed across the curve By Fergal Smith TORONTO, July 23 (Reuters) – The Canadian dollar weakened slightly against its US counterpart on Friday, but declined ended a volatile week up as investor sentiment improved and a preliminary estimate showed a rebound in retail sales in Canada in June. The loonie weakened 0.1% to 1.2575 per greenback, or 79.52 cents US. For the week, the Canadian dollar gained 0.3%, after three consecutive weekly declines. He was put under pressure earlier in the week by fears that the Delta variant of the coronavirus could hamper the global economic recovery. On Monday, it hit a five-month low at 1.2807. “The return of the Canadian dollar this week has largely reflected the strong recovery we have seen in risk appetite,†said Erik Bregar, head of foreign exchange strategy at the Bank of Canada. It really started Tuesday morning when US yields stopped falling. Wall Street rallied for the fourth session in a row as bullish earnings put investors in a buying mood, while oil, one of Canada’s top exports, was supported by expectations according to supply will remain tight throughout the year. It was up 0.2%. Canadian retail sales fell 2.1% in May from April, Statistics Canada reported. , less than a 3.0% drop predicted by analysts. A quick estimate for June showed a 4.4% gain as businesses forced to close amid a powerful third wave of COVID infections -19 began to reopen. Last week, the Bank of Canada took a rather optimistic stance on the country’s economy by slashing the pace of bond purchases to C $ 2 billion per week. Government of Canada have changed little over the entire curve Friday, the 10-year trading at 1.207%. It rebounded after five months on Tuesday to 1.104%. (Reporting by Fergal Smith; Editing by Paul Simao and Sandra Maler)
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