CANADA FX DEBT-C$ weakens to a 12-day low as greenback climbs
* Canadian dollar at C$1.3145, or 76.07 U.S. cents * Loonie touches a 12-day low at C$1.3164 * Bond prices lower across the yield curve TORONTO, Feb 21 (Reuters) - The Canadian dollar weakened on Tuesday to a 12-day low against its U.S. counterpart, whose gains against a basket of major currencies offset higher prices for oil, a major export for Canada. The greenback climbed after two Federal Reserve policymakers pointed to a potential U.S. interest rate increase next month, turning attention to the bullish fundamentals of the world's biggest economy. U.S. crude prices were up 2.3 percent at $54.63 a barrel after the Organization of the Petroleum Exporting Countries said it was sticking to its agreement to cut production and hoped compliance with the deal would be even higher. At 9:04 a.m. ET (1404 GMT), the Canadian dollar was trading at C$1.3145 to the greenback, or 76.07 U.S. cents, weaker than Monday's close of C$1.3101, or 76.33 U.S. cents, according to Reuters data. The currency's strongest level of the session was C$1.3100, while it touched its weakest since Feb. 9 at C$1.3164. Monday was a market holiday in Canada. The Bank of Canada's official close on Friday was C$1.3099, or 76.34 U.S. cents. Data on Monday showed that Canadian wholesale trade rose in December for the third consecutive month. The 0.7 percent increase was in line with economists' expectations. Speculators increased bullish bets on the Canadian dollar to the most since September, data from the Commodity Futures Trading Commission and Reuters calculations showed on Friday. Canadian dollar net long positions rose to 19,340 contracts as of Feb. 14 from 8,550 a week earlier. Bank of Canada Senior Deputy Governor Carolyn Wilkins will participate in a panel discussion on regulation in the financial services sector at 11:30 a.m. EST (1630 GMT). Canadian government bond prices were lower across the yield curve in sympathy with U.S. Treasuries and German Bunds as investors weighed upbeat euro zone data and the possibility of a March rate hike by the Fed. The two-year price fell 3 Canadian cents to yield 0.794 percent, and the 10-year declined 35 Canadian cents to yield 1.752 percent. Domestic retail sales data for December is due on Wednesday. Economists expect it to be unchanged but to show a rise of 0.6 percent after excluding autos. (Reporting by Fergal Smith; Editing by Lisa Von Ahn)
© Thomson Reuters 2017 All rights reserved.