CANADA FX DEBT-C$ hits fresh 11-year low on oil, Poloz awaited

Tue Dec 8, 2015 9:36am EST
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

* Canadian dollar at C$1.3590 or 73.58 U.S. cents
    * Bond prices higher across the maturity curve

    TORONTO, Dec 8 (Reuters) - The Canadian dollar weakened to a
fresh 11-year low against the greenback on Tuesday, tracking
additional losses for crude oil, while attention turned to a
speech by Bank of Canada Governor Stephen Poloz in Toronto.
    U.S. crude prices fell below $37 per barrel for the first
time since early 2009 amid capacity storage fears as a global
glut intensifies. 
    Sluggish Chinese trade data fed concern about slower global
growth, while planned overhaul of mining company
Anglo American's business added to negative sentiment.
    New tax measures announced by the Canadian government on
Monday were accompanied by a projection increasing the
likelihood the budged deficit will be higher than forecast.
    Firm Canadian housing data did little to offset pressure on
the Canadian dollar.
    At 9:23 a.m. EST (1423 GMT), the Canadian dollar 
was trading at C$1.3590 to the greenback, or 73.58 U.S. cents,
weaker than the Bank of Canada's official close of C$1.3513, or
74.00 U.S. cents.
    The currency's strongest level of the session was C$1.3496,
while it hit its weakest level since mid-2004 at C$1.3623.
    U.S. crude prices were down 1.65 percent to $37.03 a
barrel, while Brent crude lost 1.40 percent to
    Canadian government bond prices were higher across the
maturity curve, with the two-year price up 6.5
Canadian cents to yield 0.566 percent and the benchmark 10-year
 rising 20 Canadian cents to yield 1.498 percent,
approaching the near five-week low hit last week at 1.487
    The Canada-U.S. two-year bond spread was 2.7 basis points
wider at -36.1 basis points, trading at its deepest negative
spread since June 2007 as Canada's 2-year bond outperformed.
    The value of building permits surged by a
higher-than-expected 9.1 percent in October from September, the
first increase in three months, according to data from
Statistics Canada. 
    Seasonally adjusted housing starts were 211,916 in November,
compared with a revised 197,712 units in October, according to
Canada Mortgage and Housing Corporation. 
    Bank of Canada Governor Poloz will give a speech on "The
Evolution of Unconventional Monetary Policy," with a news
conference to follow. The text of the speech will be released at
12:35 p.m. EST (1735 GMT).

 (Reporting by Fergal Smith; Editing by Meredith Mazzilli)