CANADA FX DEBT-C$ slips against firmer greenback, crude oil softens

Tue May 19, 2015 9:43am EDT
 
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* Canadian dollar at C$22.31, or 81.76 U.S. cents
    * Bond prices mostly lower across maturity curve

    TORONTO, May 19 (Reuters) - The Canadian dollar retreated
against its U.S. counterpart on Tuesday to its weakest level in
about a month, as the greenback rallied against a basket of
major currencies to a two-week high and helped push crude oil
prices down nearly 2 percent.
    The U.S. dollar's strength came as European Central Bank
officials said they could take more measures to lower euro zone
bond yields and boost inflation, moves that could inject more
euros into the market. 
    The Canadian dollar extended its losses from Monday, with
market participants also likely positioning themselves ahead of
a speech by Bank of Canada Governor Stephen Poloz. Investors are
speculating whether Poloz could use the opportunity to temper
his earlier optimism about an improving Canadian economy or talk
down the loonie.
    
    * At 9:18 a.m. EDT (1318 GMT), the Canadian dollar 
was at C$1.2231 to the greenback, or 81.76 U.S. cents, sharply
weaker than Friday's Bank of Canada close of C$1.2022, or 83.18
U.S. cents. Most Canadian trading floors were closed on Monday
for the Victoria Day holiday. The Canadian dollar ended at
C$1.2159, or 82.24 U.S. cents on Monday, according to Thomson
Reuters Eikon data.
    * The currency's strongest level of the session was C$1.2130
while its weakest level was C$1.2242.
    * A well supplied global oil market also kept crude prices
in check. U.S. crude prices were down about 1.85 percent
at C$58.33 a barrel, while Brent crude slid 1.74 percent
to $65.11 a barrel. 
    * The Canadian dollar, which was stronger than many of its
other major currency counterparts, is expected to trade between
C$1.2150 and C$1.2250 against the U.S. dollar during the North
American session on Tuesday, according to KnightsbridgeFX.com.
    * Canadian government bond prices were mostly lower across
the maturity curve, with the two-year down 10
Canadian cents to yield 0.698 percent and the benchmark 10-year
 off 82 Canadian cents to yield 1.801 percent.
    * The Canada-U.S. two-year bond spread was 9.7 basis points,
while the 10-year spread was -47.2 basis points.

 (Reporting by Solarina Ho; Editing by Paul Simao)