November 7, 2016 / 3:04 PM / 9 months ago

CANADA FX DEBT-C$ strengthens as Clinton gets election boost, oil climbs

3 Min Read

* Canadian dollar at C$1.3383, or 74.72 U.S. cents
    * Bond prices lower across the yield curve

    TORONTO, Nov 7 (Reuters) - The Canadian dollar strengthened
against its U.S. counterpart on Monday as U.S. Democratic
presidential nominee Hillary Clinton got a boost ahead of
Tuesday's election and oil climbed.
    The FBI said Clinton would not face criminal charges related
to her use of a private e-mail server. A Clinton victory is seen
as less of a threat to Canada's trade-intensive economy.
 
    U.S. Republican presidential candidate Donald Trump has said
he would renegotiate or scrap the North American Free Trade
Agreement if he is elected.
    Oil rose, helped by a commitment from OPEC to stick to a
deal to cut output, but prices remained more than $7 below last
month's high due to persistent doubts over the feasibility of
the group's plan. U.S. crude prices were up 0.86 percent
at $44.45 a barrel.
    Canada is a major oil exporter.
    At 9:34 a.m. EDT (1434 GMT), the Canadian dollar 
was trading at C$1.3383 to the greenback, or 74.72 U.S. cents,
stronger than Friday's close of C$1.3403, or 74.61 U.S. cents.
    The currency's strongest level of the session was C$1.3300,
while its weakest was C$1.3416.
    On Friday, the loonie hit its weakest since March at
C$1.3466.
     Against the Mexican peso, the Canadian dollar touched its
weakest since Oct. 26 at C$13.8409 pesos. 
    The peso on Monday strengthened to a 1-/1/2 week high
against the greenback as traders boosted bets on a Clinton
victory after the FBI's statement. It had been losing strength
in recent sessions as opinion polls showed Trump gaining impetus
in the election race.
    Mexico is also a member of NAFTA, together with the United
States and Canada.
    Speculators raised bearish bets on the Canadian dollar to
the most since March, Commodity Futures Trading Commission data
showed on Friday. Net short Canadian dollar positions rose to
15,960 contracts in the week ended Nov. 1 from 13,324 in the
prior week. 
    Canadian government bond prices were lower across the yield
curve in sympathy with U.S. Treasuries as investors reduced
demand for safe-haven assets.
    The two-year fell 4.5 Canadian cents to yield
0.546 percent, and the benchmark 10-year declined 42
Canadian cents to yield 1.206 percent.

 (Reporting by Fergal Smith Editing by W Simon)

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