July 30, 2018 / 1:58 PM / 17 days ago

CANADA FX DEBT-C$ adds to last week's gains as oil prices climb

    * Canadian dollar at C$1.3043, or 76.67 U.S. cents
    * Price of U.S. oil rises 2.3 percent
    * Bond prices lower across a steeper yield curve
    * 10-year yield touches its highest in nearly seven weeks

    TORONTO, July 30 (Reuters) - The Canadian dollar edged
higher against its U.S. counterpart on Monday as higher oil
prices helped the loonie add to last week's gains ahead of key
domestic economic data and policy meetings for major central
banks over the coming days.
    The price of oil, one of Canada's major exports, rose as
investors remained cautious over the supply outlook. U.S. crude
       prices were up 2.3 percent at $70.26 a barrel.
             
    Canada's gross domestic product data for May is due on
Tuesday and June trade data is due on Friday. The data could
help guide investor expectations for further Bank of Canada
interest rate hikes this year. Earlier this month, the central
bank hiked its benchmark rate by 25 basis points to 1.5 percent.
    The Bank of Japan ends a two-day meeting on Tuesday, the
Federal Reserve concludes its meeting on Wednesday and the Bank
of England is expected to raise interest rates on Thursday.    
    At 9:17 a.m. EDT (1317 GMT), the Canadian dollar         
was trading 0.1 percent higher at C$1.3043 to the greenback, or
76.67 U.S. cents.
    The currency, which rose 0.7 percent last week, traded in a
narrow range of C$1.3037 to C$1.3079.    
    Speculators have cut bearish bets on the Canadian dollar for
the second straight week, data from the U.S. Commodity Futures
Trading Commission and Reuters calculations showed on Friday. As
of July 24, net short positions had fallen to 44,511 contracts
from 47,484 a week earlier.
    Canada, the European Union, Japan, Mexico and South Korea
will meet in Geneva this week to discuss how to respond to
threats by U.S. President Donald Trump to impose tariffs on U.S.
imports of autos and car parts, officials familiar with the
talks said.             
    Canadian government bond prices were lower across a steeper
yield curve in sympathy with U.S. Treasuries.
    The two-year            fell 2 Canadian cents to yield 2.073
percent and the 10-year             declined 33 Canadian cents
to yield 2.334 percent, its highest yield since June 13.

 (Reporting by Fergal Smith
Editing by Susan Thomas)
  
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