August 12, 2019 / 2:05 PM / 7 days ago

CANADA FX DEBT-C$ steady as oil rallies, trade war fears linger

    * Canadian dollar nearly flat against U.S. dollar
    * Price of U.S. oil increases nearly 1%
    * Canadian bond prices rise across yield curve

    TORONTO, Aug 12 (Reuters) - The Canadian dollar was little
changed against its U.S. counterpart on Monday, holding on to
gains from the last two sessions as oil prices rose, while
investors worried about a prolonged U.S.-China trade conflict.
    At 9:47 a.m. (1347 GMT), the Canadian dollar          was
trading nearly unchanged at 1.3220 to the greenback, or 75.64
U.S. cents. The currency, which last Wednesday hit its weakest
intraday level in seven weeks at 1.3344, traded in a range of
1.3207 to 1.3250.
    The price of oil, one of Canada's major exports, gained
despite worries about a global economic slowdown and the ongoing
trade war between the United States and China, which weighed on
global stock markets         . U.S. crude        oil futures
were up nearly 1% at $55.04 a barrel.                 
    Strategists expect the Canadian dollar to strengthen over
the coming year as Canada's economy stays strong enough to
withstand global trade uncertainty, a Reuters poll last week
showed.             
    On Friday, data showed that Canada's economy shed a net
24,200 jobs in July but that wages for permanent employees - a
figure watched closely by the Bank of Canada - rose 4.5% on a
year-over-year basis, the largest gain since January 2009.
            
    Speculators have raised their bullish bets on the Canadian
dollar, data from the U.S. Commodity Futures Trading Commission
and Reuters calculations showed on Friday. As of Aug. 6, net
long positions had increased to 24,166 contracts from 21,722 in
the prior week.                    
    Canadian government bond prices were higher across the yield
curve in sympathy with U.S. Treasuries on Monday. The two-year
           rose 8.5 Canadian cents to yield 1.342% and the
10-year             was up 40 Canadian cents to yield 1.232%.
    Last Wednesday, the 10-year yield touched its lowest
intraday level since June 2017 at 1.122%.   

 (Reporting by Fergal Smith
Editing by Paul Simao)
  
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