CANADA FX DEBT-C$ trades sideways before central bankers' gathering

Thu Aug 25, 2016 9:38am EDT
 
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* Canadian dollar at C$1.2927, or 77.36 U.S. cents
    * Bond prices lower across the maturity curve

    TORONTO, Aug 25 (Reuters) - The Canadian dollar was little
changed against the greenback on Thursday despite solid U.S.
data and lower oil prices, trading in a narrow range before the
start of a global central bankers' gathering in Jackson Hole.   
    
   Data showed U.S. core capital goods orders rose the most in
six months, offering a tentative sign that a downturn in U.S.
business spending is starting to ease, which may be good news
for Canada's exporters. 
    Weak U.S. business investment has hampered a long-awaited
pick-up in growth of Canada's non-energy exports, economists
say, while a weaker Canadian dollar has not helped exports as
much as expected. 
    Oil prices slipped as the market focused on oversupply and
fading expectation of a production freeze. U.S. crude 
prices were down 0.26 percent to $46.65 a barrel.    
    Investors are awaiting clues from Jackson Hole on the U.S.
interest rate outlook, with the focus on Friday's keynote speech
by Federal Reserve Chair Janet Yellen.
    At 9:23 a.m. EDT (1323 GMT), the Canadian dollar 
was trading at C$1.2927 to the greenback, or 77.36 U.S. cents,
slightly stronger than Wednesday's close of C$1.2930, or 77.34
U.S. cents.
    The currency's strongest level of the session was C$1.2899,
while its weakest level was C$1.2940.    
    Canadian government bond prices were lower in sympathy with
Treasuries after the solid U.S. data.
    The two-year bond fell 2.5 Canadian cents to
yield 0.586 percent and the benchmark 10-year 
declined 18 Canadian cents to yield 1.056 percent.

 (Reporting by Fergal Smith; Editing by Meredith Mazzilli)