CANADA FX DEBT-C$ at weakest in a month as oil falls

Tue Sep 13, 2016 9:05am EDT
 
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* Canadian dollar at C$1.3155, or 76.02 U.S. cents
    * Bond prices mixed across the maturity curve

    TORONTO, Sept 13 (Reuters) - The Canadian dollar touched its
weakest level in more than a month against its U.S. counterpart
on Tuesday, as a gloomy outlook for oil demand growth weighed on
crude prices.    
    At 8:46 a.m. EDT (1246 GMT), the commodity-linked Canadian
dollar was trading at C$1.3155 to the greenback, or
76.02 U.S. cents, much weaker than the Bank of Canada's official
close on Monday of C$1.3049, or 76.63 U.S. cents.
    Oil fell more than 2 percent after the International Energy
Agency (IEA) said a sharp slowdown in global oil demand growth,
coupled with ballooning inventories and rising supply, means the
crude market will be oversupplied at least through the first six
months of 2017. 
    That view marked a change from the agency's forecast a month
ago when it saw supply and demand broadly in balance over the
rest of this year and expected inventories to fall swiftly.
    U.S. crude prices were down 2 percent to $45.38 a
barrel, while Brent lost 1.5 percent to
$47.6. 
    The Canadian dollar was underperforming most of its key
currency counterparts, although it gained against the Brazilian
real and the Mexican peso.
    Canadian government bond prices were mixed, with
shorter-dated prices up and long-dated down. The two-year
 price up half a Canadian cent to yield 0.583 percent
and the benchmark 10-year was unchanged to yield
1.156 percent.
    The U.S. dollar was broadly higher, recovering ground lost
in the previous session following a speech by Federal Reserve
policymaker Lael Brainard that solidified the view that U.S.
interest rates are unlikely to rise this month. 

 (Reporting by Alastair Sharp; Editing by Nick Zieminski)