February 1, 2018 / 2:46 PM / 8 months ago

CANADA FX DEBT-C$ steadies as investors turn attention to U.S. jobs data

    * Canadian dollar at C$1.2316, or 81.20 U.S. cents
    * Bond prices mixed across a steeper yield curve
    * Oil prices rise 0.9 percent

    TORONTO, Feb 1 (Reuters) - The Canadian dollar steadied
against its U.S. counterpart on Thursday after posting a
four-month high the day before, as investors weighed the
prospects for future Federal Reserve interest rate decisions and
turned attention to Friday's U.S. jobs data.
    The U.S. dollar        erased early gains after Fed comments
about rising inflation this year failed to lift the currency
from near its three-year lows.             
    The prospect of higher inflation has supported market
expectations for another interest rate hike from the Fed as soon
as March. Friday's non-farm payrolls report will provide the
next major clue for investors.
    The price of oil, one of Canada's major exports, rose after
a survey showed commitment by the Organization of the Petroleum
Exporting Countries to supply cuts remains in place.
            
    U.S. crude        prices were up 0.9 percent at $65.3 a
barrel.
    At 9:30 a.m. EST (1430 GMT), the Canadian dollar         
was trading nearly unchanged at C$1.2316 to the greenback, or
81.20 U.S. cents.
    The currency traded in a narrow range between C$1.2295 and
C$1.2331. On Wednesday, it touched its strongest since Sept. 20
at C$1.2250.
    Data on Wednesday showed robust growth for Canada's economy
in November. But markets expect the Bank of Canada to hold off
from further interest rate hikes until the second quarter due to
an uncertain outlook for the North American Free Trade
agreement.
    Canadian Prime Minister Justin Trudeau said on Wednesday he
did not think U.S. President Donald Trump would pull out of
NAFTA despite slow progress at negotiations to update the $1.2
trillion trade pact.             
    Canadian government bond prices were mixed across a steeper
yield curve, with the two-year            up 0.5 Canadian cent
to yield 1.839 percent and the 10-year             falling 19
Canadian cents to yield 2.315 percent.
    The 10-year yield touched its highest intraday since July
2014 at 2.327 percent.  

 (Reporting by Fergal Smith
Editing by Chizu Nomiyama)
  
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