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CANADA FX DEBT-C$ firms after finding support near three-month low
November 1, 2017 / 9:27 PM / 19 days ago

CANADA FX DEBT-C$ firms after finding support near three-month low

 (Adds dealer quotes, details throughout; updates prices)
    * Canadian dollar at C$1.2865, or 77.73 U.S. cents
    * Bond prices lower across yield curve

    By Fergal Smith
    TORONTO, Nov 1 (Reuters) - The Canadian dollar edged higher
against its U.S. counterpart on Wednesday after finding support
near a more than three-month low hit last week, as the Federal
Reserve left U.S. interest rates unchanged and investors braced
for top-tier domestic data later in the week.
    At 5 p.m. EDT (2100 GMT), the Canadian dollar          was
trading at C$1.2865 to the greenback, or 77.73 U.S. cents, up
0.2 percent.
    The currency traded in a range of C$1.2855 to C$1.2910. It
touched its weakest level in over three months at C$1.2916 on
Friday.
    "We have seen some pretty good selling interest of
Dollar-Canada on any move above C$1.29, hence why most of those
moves above have been very, very short-lived," said Blake
Jespersen, managing director, foreign exchange sales at BMO
Capital Markets.
    Market participants have also been reluctant to engage in
"active position-taking" ahead of domestic jobs data for October
and September trade data, which are due on Friday, Jespersen
noted.
    Canadian economic data on Wednesday showed that the pace of
growth in the manufacturing sector slowed to a nine-month low in
October.             
    The currency had been pressured since September by domestic
data pointing to a slower growth in the third quarter after
rapid expansion in the economy in the first half of the year and
by a more dovish tone from the Bank of Canada.   
    In contrast, the Fed pointed to solid U.S. economic growth
and a strengthening labor market, a sign it is on track to lift
borrowing costs again in December.             
    Prices of oil, one of Canada's major exports, dipped in
seesaw trade after weekly U.S. government inventory data showed
the latest crude stock draw was not as big as an industry trade
group had reported.             
    U.S. crude        prices settled 8 cents lower at $54.30 a
barrel.      
    Canadian government bond prices were lower across the yield 
curve, with the two-year            down 4.5 Canadian cents to
yield 1.416 percent and the 10-year             falling 18
Canadian cents to yield 1.974 percent.

 (Reporting by Fergal Smith, editing by G Crosse)
  
 

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