September 19, 2019 / 8:26 PM / 3 months ago

CANADA FX DEBT-Loonie rebounds from 2-week low as greenback broadly dips

    * Canadian dollar rises 0.3% against the greenback
    * Canada's economy adds 49,300 jobs in August
    * Canada's 10-year yield hits a one-week low at 1.402%

    By Fergal Smith
    TORONTO, Sept 19 (Reuters) - The Canadian dollar
strengthened against its U.S. counterpart on Thursday,
recovering from a two-week low the day before, as the greenback
broadly declined and investors turned their attention to
domestic retail sales data on Friday.
    The U.S. dollar weakened against a basket of major
currencies after a slew of central bank decisions came in more
hawkish than expected.             
    "It does seem to be more of a dollar move than anything
else, but essentially we are still rangebound here," said Shaun
Osborne, chief currency strategist at Scotiabank. "We might get
a bit more direction off of the retail sales number tomorrow."
    Canada's retail sales report for July is due on Friday,
which could help guide expectations for the Bank of Canada's
interest rate outlook.           
    Canada's central bank has left its policy rate on hold this
year even as some of its global peers, including the U.S.
Federal Reserve, have eased. 
    On Thursday, data for August showed that Canada's labor
force was boosted by 49,300 jobs and that Canadian home prices
rose for the fourth consecutive month.                          
     
    At 3:28 p.m. (1928 GMT), the Canadian dollar          was
trading 0.3% higher at 1.3253 to the greenback, or 75.45 U.S.
cents. The currency, which on Wednesday hit its weakest intraday
level since Sept. 4 at 1.3310, traded in a range of 1.3242 to
1.3308.
    There have been signs in the market of a significant order
being worked to sell the Canadian dollar but the selling
pressure tends to ease when the currency gets to 1.33, Osborne
said.
    U.S. crude oil futures        settled 2 cents higher at
$58.13 a barrel as the market assessed supply risks following
last weekend's attacks on Saudi oil infrastructure. Oil is one
of Canada's major exports.             
    Canadian government bond prices were slightly higher across
a flatter yield curve, with the two-year            up 1
Canadian cent to yield 1.598% and the 10-year             rising
8 Canadian cents to yield 1.429%.
    The 10-year yield touched its lowest intraday level since
Sept. 12 at 1.402%.

 (Reporting by Fergal Smith; editing by Jonathan Oatis)
  
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