November 2, 2016 / 1:42 PM / in 10 months

CANADA FX DEBT-C$ gains vs greenback amid U.S. election uncertainty

* Canadian dollar at C$1.3375, or 74.77 U.S. cents
    * Loonie posts a 3-week high against the Mexican peso
    * Bond prices slightly higher across the yield curve

    TORONTO, Nov 2 (Reuters) - The Canadian dollar strengthened
against its U.S. counterpart on Wednesday despite lower oil
prices as U.S. election uncertainty pressured the greenback.
    The U.S. dollar fell against a basket of major
currencies as investors were rattled by signs the U.S.
presidential race was tightening just days before the Nov. 8
vote. 
    Losses for the greenback come ahead of a Federal Reserve
monetary policy decision due later on Wednesday.
    U.S. oil prices were down 1.54 percent at $45.95 a
barrel as jittery investors awaited official U.S. crude
stockpile figures after industry data showed a surprise build in
inventories. Canada is a major oil exporter. 
    At 9:04 a.m. EDT (1304 GMT), the Canadian dollar 
was trading at C$1.3375 to the greenback, or 74.77 U.S. cents,
stronger than Tuesday's close of C$1.3393, or 74.67 U.S. cents.
    The currency's strongest level of the session was C$1.3360,
while its weakest was C$1.3406.
    Against the Mexican peso the loonie touched its
strongest since Oct. 10 at 14.5148 pesos.
    The peso is seen as the chief proxy for market pricing of
Republican presidential candidate Donald Trump's chances of
winning.
    Strengthening of the Canadian dollar against the peso adds
to pressure on Canadian exporters who have struggled with weak
growth this year. Canada competes with Mexico for exports to the
United States. 
    Canadian government bond prices were slightly higher across
the yield curve, with the two-year up 1.5 Canadian
cents to yield 0.545 percent and the benchmark 10-year
 rising 7 Canadian cents to yield 1.2 percent.
    The market showed little reaction on Tuesday to plans by the
federal government to boost spending on infrastructure projects
by an extra C$81 billion over the next 12 years to revitalize a
limping economy. 
    Bank of Canada Senior Deputy Governor Carolyn Wilkins will
speak on Wednesday on a panel at a Ontario Securities Commission
event in Toronto.           

 (Reporting by Fergal Smith, Editing by W Simon)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below