CANADA FX DEBT-C$ strengthens as oil prices push higher

Wed Dec 23, 2015 10:15am EST
 
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* Canadian dollar at C$1.3887 or 72.01 U.S. cents
    * Bond prices fall across the maturity curve

 (Adds GDP, quotes, updates prices)
    TORONTO/OTTAWA, Dec 23 (Reuters) - The Canadian dollar
strengthened against the greenback on Wednesday after oil prices
rose following an unexpected decline in U.S. crude inventories.
    The loonie shrugged off a disappointing set of domestic data
that showed the economy stalled in October, while retail sales
rose less than expected. 
    The currency touched a session low against the greenback
immediately following the reports but it recovered its strength
as U.S. crude prices rose 94 cents to $37.08 a barrel.
The Canadian dollar has lost nearly 4 percent this month as oil
has taken another dive. 
    "The data I think really compounds the run of very
disappointing activity data that we've had in Canada through the
late third quarter and into the fourth quarter," said Shaun
Osborne, chief currency strategist at Scotiabank. "It really
does suggest the economy has taken, at this point anyway, quite
a significant dive through the fourth quarter.
    "Oil prices certainly have blunted the impact of the data."
    The Canadian dollar was at C$1.3887 to the
greenback, or 72.01 U.S. cents, stronger than Tuesday's close of
C$1.3937, or 71.75 U.S. cents.
    The currency's strongest level of the session was C$1.3870,
while its weakest level was C$1.3941.
    Canadian government bond prices were lower across the
maturity curve, with the two-year price down 0.5
Canadian cent to yield 0.516 percent and the benchmark 10-year
 falling 16 Canadian cents to yield 1.434 percent.

 (Reporting by Euan Rocha and Leah Schnurr)