CANADA FX DEBT-C$ strengthens slightly before Jackson Hole gathering

Thu Aug 25, 2016 4:58pm EDT
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(Adds analyst comments and details on Jackson Hole, updates
    * Canadian dollar ends at C$1.2926, or 77.36 U.S. cents
    * Bond prices lower across the maturity curve

    By Fergal Smith
    TORONTO, Aug 25 (Reuters) - The Canadian dollar edged
slightly higher against the greenback on Thursday, trading in a
narrow range before the start of a gathering in Jackson Hole,
Wyoming, of central bankers from around the world, as higher oil
prices offset robust U.S. data.
    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.
    "The market is having a tough time trying to read through
what seems to be a lack of a unified voice on the Fed," said
Mazen Issa, senior fx strategist at TD Securities.
    Bank of Canada Governor Stephen Poloz is attending the
annual economic policy symposium in Jackson Hole but will not
have a speaking role, a spokesperson for the central bank told
    The Canadian dollar ended at C$1.2926 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 was C$1.2940.
    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. 
    If U.S. capital expenditure is picking up it should feed
into higher Canadian exports, Issa said.
    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. 
    U.S. crude oil futures settled 56 cents higher at
$47.33 a barrel, although gains were pared after a Reuters
interview with the Saudi Energy Minister that cast doubts on any
OPEC output freeze. 
    Canadian government bond prices were lower in sympathy with
Treasuries, pressured by the solid U.S. data.
    The two-year bond dipped 3 Canadian cents to
yield 0.589 percent and the benchmark 10-year 
declined 23 Canadian cents to yield 1.062 percent.

 (Reporting by Fergal Smith; Editing by Meredith Mazzilli and
James Dalgleish)