CANADA FX DEBT-C$ ekes out gain on soft greenback; Poloz speaks

Tue Apr 28, 2015 9:36am EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

* Canadian dollar at C$1.2090 or 82.71 U.S. cents
    * Bond prices mixed across the maturity curve

    TORONTO, April 28 (Reuters) - The Canadian dollar rose
modestly against a slumping greenback on Tuesday, with the U.S.
dollar hitting a one-month low ahead of a Federal Reserve policy
meeting this week that may provide clues on when the Fed will
raise interest rates.
    The U.S. economy has shown signs of slowing with a
lackluster run of first-quarter economic data, pushing
expectations for a rate hike toward the second half of 2015.
    Domestically, Bank of Canada Governor Stephen Poloz and
Senior Deputy Governor Carolyn Wilkins were speaking before the
House of Commons finance committee on Tuesday morning on the
state of the economy and the impact of cheap crude.
 
        
    * At 9:16 a.m. EDT (1316 GMT), the Canadian dollar 
was at C$1.2090 to the greenback, or 82.71 U.S. cents, stronger
than the Bank of Canada's official close on Monday of C$1.2101,
or 82.64 U.S. cents.
    * The loonie has traded between C$1.2050 and C$1.2116 on
Tuesday.
    * U.S. consumer confidence data for April was due at 10:00
a.m. EDT
    * On Wednesday, the U.S. first-quarter GDP data is due at
8:30 a.m. EDT and the Fed will issue a policy statement at 2:00
p.m. 
    * U.S. crude prices were up 0.02 percent at $57,
while Brent crude lost 0.17 percent to $64.72. The
weaker U.S. dollar has provided some support for oil, with
prices holding near 2015 highs. 
    * The Canadian dollar, which was underperforming most of its
key currency counterparts, is expected to trade between C$1.2020
and C$1.2100 against the U.S. dollar on Tuesday, according to
RBC Capital Markets.
    * Canadian government bond prices were mixed across the
maturity curve, with longer-term debt declining. The two-year
 price was down 1.5 Canadian cents to yield 0.655
percent and the benchmark 10-year fell 31 Canadian
cents to yield 1.496 percent.
    * The Canada-U.S. two-year bond spread was 9.2 basis points,
while the 10-year spread was 46.0.

 (Reporting by Solarina Ho; Editing by Peter Galloway)