October 23, 2018 / 1:30 PM / a month ago

CANADA FX DEBT-C$ edges lower as oil and stock prices slide

    * Canadian dollar dips 0.1 percent against the greenback
    * Price of U.S. oil falls 2.4 percent
    * Canadian bond prices rally across a flatter yield curve

    TORONTO, Oct 23 (Reuters) - The Canadian dollar edged lower
against its U.S. counterpart on Tuesday as oil and stock prices
declined, although the loonie traded in a narrow range ahead of
a Bank of Canada interest rate decision on Wednesday.
    World shares slid towards their lowest level in a year, as
negative drivers from fatigued earnings and Saudi Arabia's
diplomatic isolation to a brewing spat over Italy's finances
piled on the pressure.             
     Canada is prepared to freeze a big arms deal with Saudi
Arabia if it concludes the weapons have been misused, Prime
Minister Justin Trudeau said on Monday, amid increasing pressure
to punish Riyadh for the killing of journalist Jamal Khashoggi.
            
    Canada runs a current account deficit and exports many
commodities, including oil, so its economy could be hurt if the
global flow of trade or capital slows.
    U.S. crude oil futures        were down 2.4 percent at
$67.73 a barrel after Saudi Arabia said it could supply more
crude quickly if needed, reassuring investors ahead of U.S.
sanctions on Iran's crude exports that start next month.
            
    At 9:17 a.m. (1317 GMT), the Canadian dollar          was
trading 0.1 percent lower at 1.3116 to the greenback, or 76.24
U.S. cents.
    The currency, which on Friday hit its weakest level in more
than five weeks at 1.3132, traded in a range of 1.3083 to
1.3123.
    Weaker-than-expected domestic data has added to recent
pressure on the loonie. Since Friday, readings on inflation,
retail sales and wholesale trade have undershot economists'
estimates.
    Still, money markets expect the Bank of Canada to raise its
key interest rate on Wednesday by 25 basis points to 1.75
percent. It would be the fifth hike since July 2017 by the
central bank, which sees Canada's economy operating near
capacity.           
    Canadian government bond prices were higher across a flatter
yield curve in sympathy with U.S. Treasuries. The two-year
           rose 5 Canadian cents to yield 2.269 percent and the
10-year             climbed 40 Canadian cents to yield 2.437
percent.

 (Reporting by Fergal Smith; editing by Jonathan Oatis)
  
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below