June 28, 2019 / 12:24 PM / 18 days ago

CANADA FX DEBT-Canadian dollar climbs to 5-month high ahead of GDP data

    * Canadian dollar rises 0.1% against the greenback
    * Price of U.S. oil increases 0.2%
    * Canadian bond prices dip across the yield curve

    TORONTO, June 28 (Reuters) - The Canadian dollar
strengthened to a near five-month high against the greenback on
Friday but the move was small ahead of domestic data that could
help guide expectations for Bank of Canada interest rate
decisions.
    At 8:07 a.m. (1207 GMT), the Canadian dollar          was
trading 0.1% higher at 1.3086 to the greenback, or 76.42 U.S.
cents. The currency, which has been boosted over the last week
by the prospect of Federal Reserve interest rate cuts, touched
its strongest intraday level since Feb. 1 at 1.3085.
    For the month, the loonie is on track to rise 3.3%.
    A Reuters poll showed that economists expect gross domestic
product, due for release at 8:30 a.m. (1230 GMT) to rise 0.1% in
April after climbing 0.5% in the prior month. The Bank of Canada
has pointed to evidence that Canada's economy is recovering
after a slow down around the turn of the year.    
    World shares were steady as uncertainty ahead of a meeting
on trade between U.S. President Donald Trump and Chinese
President Xi Jinping deterred traders from making bold
directional bets.             
    Canada is a major exporter of commodities, including oil, so
its economy could benefit from reduced uncertainty for global
trade. U.S. crude oil futures        were up 0.2% at $59.56 a
barrel.             
    Canadian government bond prices edged lower across the yield
curve in sympathy with U.S. Treasuries. The two-year           
fell 1.5 Canadian cents to yield 1.463% and the 10-year
            was down 2 Canadian cents to yield 1.476%.
    On Thursday, the 10-year yield touched its highest intraday
in more than two weeks at 1.522%.    

 (Reporting by Fergal Smith
Editing by Nick Zieminski)
  
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