Canadian dollar 6/8

 Canadian dollar to continue its recovery against the U.S. dollar in the near term due to ongoing coronavirus uncertainty and U.S.-China tensions. The loosening of coronavirus restrictions increases the risk of a second wave of infections while the "actual" economic effects of lockdowns will "only become clear" when hard second quarter data are published, Commerzbank's You-Na Park-Heger says. "We are therefore sceptical that the risk-on market sentiment will last." Meanwhile, the "tense relationship" between the U.S. and China could also have a "stronger influence" on financial markets, she says. Commerzbank expects USD/CAD to stabilize at current levels "for the time being." USD/CAD falls 0.3% to 1.3394.