January 30, 2019 / 2:42 PM / 22 days ago

CANADA FX DEBT-C$ tracks oil prices higher ahead of Fed rate decision

    * Canadian dollar rises 0.4 percent against the greenback
    * Loonie on track to rise 3.2 percent in January
    * Price of U.S. oil up 1.2 percent
    * Bond prices fall across the yield curve

    TORONTO, Jan 30 (Reuters) - The Canadian dollar strengthened
against its U.S. counterpart on Wednesday as stocks and oil
prices rose ahead of a Federal Reserve interest rate decision,
with the currency on track to outperform its peers in the month
of January.
    U.S. stocks were boosted by Apple Inc's          results,
while the price of oil climbed on concerns about supply
disruptions following U.S. sanctions on Venezuela's oil
industry.                         
    U.S. crude        prices were up 1.2 percent at $53.97 a
barrel. Oil is one of Canada's major exports.
    The U.S. central bank was scheduled to release its latest
policy statement at 2 p.m. EST (1900 GMT). Investors widely
expected the Fed to leave its benchmark overnight lending rate
unchanged in a target range of 2.25 percent to 2.50 percent due
to a more uncertain global economic outlook.             
    At 9:14 a.m. (1414 GMT), the Canadian dollar          was
trading 0.4 percent higher at 1.3223 to the greenback, or 75.63
U.S. cents.
    The currency, which on Monday touched its strongest intraday
level in more than two weeks at 1.3204, traded in a range of
1.3213 to 1.3282.
    The loonie has climbed 3.2 percent for the month so far, the
best performance of G10 currencies. It declined 7.8 percent in
2018.    
    U.S. Trade Representative Robert Lighthizer on Tuesday sent
Congress a list of legislative changes required to implement the
new U.S.-Mexico-Canada trade pact, a key step in the approval
process for replacing the North American Free Trade Agreement.
            
    Canada sends about 75 percent of its exports to the United
States.
    Canadian government bond prices were lower across the yield
curve in sympathy with U.S. Treasuries. The two-year           
fell 2 Canadian cents to yield 1.861 percent and the 10-year
            declined 13 Canadian cents to yield 1.956 percent.

 (Reporting by Fergal Smith; Editing by Meredith Mazzilli)
  
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