CANADA FX DEBT-C$ dips as oil softens, but up on the week
(Adds details, comment, closing figures) * Canadian dollar at C$1.2311, or 81.23 U.S. cents * Bond prices mixed across the maturity curve By Andrea Hopkins TORONTO, June 12 (Reuters) - The Canadian dollar slipped against the greenback on Friday as crude prices extended Thursday's losses, with investors booking profits on further signs a global oil supply glut will not be abating any time soon. The U.S. dollar gave up earlier gains, however, as the euro edged higher after Greece said it was getting closer to a debt deal. "The range has been small, a day of minor consolidation. The U.S. dollar has been under a bit of pressure too, but the Canadian dollar hasn't been able to take advantage," said Adam Button, currency analyst at ForexLive in Montreal. "That's not a surprise given the strength of the loonie earlier in the week and given oil has weakened off this week, but the Canadian dollar has held its ground. That's a good sign heading into next week." The Canadian dollar, which traded between C$1.2279 and C$1.2347 during the session, finished at C$1.2311 to the greenback, or 81.23 U.S. cents, weaker than Thursday's close at C$1.2275, or 81.47 U.S. cents. U.S. crude fell 81 cents, or 1.3 percent, to $59.96 a barrel, and rose 1.5 percent on the week. Brent crude settled down $1.24, or 2 percent, at $63.87. For the week, Brent ended up 0.7 percent. The price of oil, a major Canadian export, rebounded early in the week, but the rally stalled as the dollar strengthened and Saudi Arabia indicated it could be ready to increase output. Despite Friday's dip, the loonie has gained more than 1 percent this week, following an unexpectedly strong Canadian employment report last Friday and on a lackluster greenback. "There was a jump in Canadian dollar shorts ... Based on the latest positioning data, it's clear speculators were caught on the wrong side of the trade this week," said Button. Canadian home prices rose in May to a record high despite a drop in Calgary as weak oil prices continued to hurt demand in Canada's energy heartland, the Teranet-National Bank Composite House Price Index showed on Friday. The Federal Reserve will be in focus next week, with market participants keen to see how the recent string of economic data will shape the U.S. central bank's view on when it will hike interest rates. Canadian government bond prices were mostly higher across the maturity curve, with the two-year rising 1.5 Canadian cent to yield 0.648 percent and the benchmark 10-year rising 8 Canadian cents to yield 1.805 percent. (Editing by James Dalgleish)
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