April 15, 2019 / 2:01 PM / 11 days ago

CANADA FX DEBT-C$ edges higher ahead of Bank of Canada business survey

    * Canadian dollar rises 0.1% against the greenback
    * Canadian home sales increase 0.9% month-over-month in
March
    * Price of U.S. oil falls 0.7%
    * 10-year yield reaches near six-week high

    TORONTO, April 15 (Reuters) - The Canadian dollar rose
against its U.S. counterpart on Monday as the rally in global
stock markets offset a decline in oil prices, but the currency's
gains were restrained ahead of a business survey from the Bank
of Canada.
    Stocks rose after progress in the U.S.-China trade talks
buoyed sentiment and investors grew somewhat optimistic about
the next batch of corporate earnings.             
    Canada is a major exporter of commodities, including oil, so
its currency tends to benefit from the positive signal higher
stock prices send about the outlook for the global economy.
    The price of oil, one of Canada's major exports, has rallied
about 50% since December. But its recent rally was halted on
Monday after signals that Russia may exit production cuts. U.S.
crude        prices were down 0.7% at $63.44 a
barrel.            
    At 9:36 a.m. (1336 GMT), the Canadian dollar          was
trading 0.1% higher at 1.3309 to the greenback, or 75.14 U.S.
cents. The currency, which rose 0.5% last week, traded in a
range of 1.3298 to 1.3350.
    The Bank of Canada will release the spring issue of the
Business Outlook Survey at 10:30 a.m. (1430 GMT), which could
help guide expectations for the central bank's interest rate
decision on April 24.
    Data from the U.S. Commodity Futures Trading Commission and
Reuters calculations showed on Friday that speculators have cut
their bearish bets on the Canadian dollar. As of April 9, net
short positions had dipped to 43,202 contracts from 44,323 in
the prior week.
    Canadian home sales rose 0.9% month-over-month in March,
edging higher after a sharp drop in the previous month, the
Canadian Real Estate Association said on Monday.             
    Canadian government bond prices were lower across the yield
curve, with the two-year            down 3 Canadian cents to
yield 1.651% and the 10-year             falling 12 Canadian
cents to yield 1.797%.
    The 10-year yield touched its highest intraday level since
March 7 at 1.807%.
       

 (Reporting by Fergal Smith
Editing by Susan Thomas)
  
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