CANADA FX DEBT-C$ weaker in tight range as oil slips, data eyed
(New throughout, updates prices and market activity, adds strategist comment) * Canadian dollar ends at C$1.3099, or 76.34 U.S. cents * Bond prices lower across the maturity curve By Alastair Sharp TORONTO, Nov 2 (Reuters) - The Canadian dollar weakened slightly against its U.S. counterpart on Monday as oil prices slipped, with the currency trading in a tight range ahead of domestic trade data and jobs numbers for Canada and the United States later in the week. "It's consolidative around C$1.31 as we head into Wednesday's trade numbers and Friday's payroll numbers," said Jack Spitz, managing director of foreign exchange at National Bank Financial. He said the currency faces a string of support levels and likely renewed corporate and real money interest in the $1.3040-C$1.3070 range. He said the Canadian dollar would be pressured by any data supporting the argument for a U.S. Federal Reserve rate hike next month. "If we see weak data in Canada and strong data in the States it could be worth 100 points higher in dollar/Canada," Spitz said. "And I think that is the vulnerable side, certainly until we see the Fed in December." The Canadian dollar settled at C$1.3099 to the greenback, or 76.34 U.S. cents, weaker than the Friday's official close of C$1.3075, or 76.48 U.S. cents. The currency's strongest level of the session was C$1.3065, while its weakest level was C$1.3117. It underperformed most of its key currency counterparts. Oil prices fell after soft Chinese factory data raised worries about energy demand in the world's second largest economy, while record high Russian crude output suggested little easing in the global supply glut. China's factory activity fell for an eighth straight month in October but at a slower pace as export orders revived, a private survey showed on Monday. U.S. crude prices settled down 1 percent to $46.14, while Brent crude lost 1.6 percent to $48.77. Canadian government bond prices were lower across the maturity curve, with the two-year down 1.5 Canadian cents to yield 0.584 percent and the benchmark 10-year off 36 Canadian cents to yield 1.580 percent.
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