CANADA FX DEBT-C$ flat as markets await Fed rate-hike signals

Wed Jun 17, 2015 9:45am EDT
 
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* Canadian dollar at C$1.2311 or 81.23 U.S. cents
    * Bond prices mixed across the maturity curve

    TORONTO, June 17 (Reuters) - The Canadian dollar was flat
against the greenback on Wednesday despite stronger oil prices
and an upswing in domestic wholesale trade data as markets
awaited an interest-rate decision and statement from the U.S.
Federal Reserve later in the day.
    Canadian wholesale trade jumped by 1.9 percent in April from
March, far more than the 0.3 percent forecast, erasing some
declines early in the year. 
    Market participants will be parsing the Fed statement for
clues on when the central bank will raise interest rates.
Policymakers are expected to signal a hike will come sometime
this year.
    
    
    * At 9:27 a.m. EDT (1327 GMT), the Canadian dollar 
was at C$1.2311 to the greenback, or 81.23 U.S. cents, little
changed from the Bank of Canada's official close of C$1.2312, or
81.22 U.S. cents, on Tuesday.
    * The currency's strongest level of the session was
C$1.2284, while its weakest was C$1.2333.
    * The Fed decision is due at 2 p.m. EDT (1800 GMT).
    * Figures from the U.S. Energy Information Administration
are expected to show that U.S. crude stocks fell for a seventh
consecutive week, while an expected fall in production due to
the relatively high cost of producing shale has also supported
prices for oil, a major Canadian export. 
    * U.S. crude prices were up 1.87 percent at $61.09 a
barrel, while Brent crude added 1.77 percent to $64.83.
    * The Canadian dollar, which was underperforming most of its
key currency counterparts, is expected to trade between C$1.2275
and C$1.2375 against the U.S. dollar on Wednesday, according to
RBC Capital Markets.
    * Canadian government bond prices were mixed across the
maturity curve with longer-term bonds falling. The two-year
 price was down 2 Canadian cents to yield 0.617
percent and the benchmark 10-year fell 23 Canadian
cents to yield 1.763 percent.
    * The Canada-U.S. two-year bond spread was -9.3 basis
points, while the 10-year spread was -57.6 basis points.

 (Reporting by Solarina Ho; Editing by Peter Galloway)