July 17, 2017 / 2:06 PM / 2 months ago

CANADA FX DEBT-C$ steady near 14-month highs even as home sales slide

    * Canadian dollar at C$1.2651, or 79.05 U.S. cents
    * Loonie touches strongest since May 2016 at C$1.2641
    * Domestic home resales see largest drop in June since 2010
    * Bond prices slightly lower across the yield curve

    TORONTO, July 17 (Reuters) - The Canadian dollar was little
changed against its U.S. counterpart on Monday, holding near
14-month highs following a Bank of Canada interest rate hike
last week even as domestic data showed a big drop in home sales.
    Resales of Canadian homes fell 6.7 percent in June from May,
the largest monthly drop since 2010 and the third straight
monthly decline as Toronto sales plunged, the Canadian Real
Estate Association said.             
    At 9:44 a.m. ET (1344 GMT), the Canadian dollar          was
trading nearly unchanged at C$1.2651 to the greenback, or 79.05
U.S. cents.
    The currency's weakest level of the session was C$1.2672,
while it touched its strongest since May 2016 at $1.2641.
    Last week, the loonie rose 1.8 percent as the Bank of Canada
raised rates for the first time in seven years and signaled it
will hike again over the coming months. The currency has gained
more than 6 percent since the central bank turned hawkish in
June.    
    In other domestic data, foreign investors ramped up
purchases of Canadian securities in May to C$29.5 billion, the
second largest amount on record.             
    Prices of oil, one of Canada's major exports, edged higher
as fewer drilling rigs were added in the United States. U.S.
crude        prices were up 0.06 percent at $46.57 a barrel.
            
    Speculators cut bearish bets on the loonie for a seventh
straight week, data from the U.S. Commodity Futures Trading
Commission and Reuters calculations showed on Friday. Canadian
dollar net short positions have fallen to 8,604 contracts as of
July 11 from 39,372 contracts a week earlier.             
    Canadian government bond prices were slightly lower across
the yield  curve, with the two-year            down 0.5 Canadian
cent to yield 1.193 percent and the 10-year             falling
3 Canadian cents to yield 1.899 percent.
    On Thursday, the 10-year yield touched its highest since
December 2014 at 1.948 percent.   
    Data on Canada's manufacturing sales for May is due on
Wednesday, while retail sales data for May and the June
inflation report are due out on Friday.         

 (Reporting by Fergal Smith; Editing by Bernadette Baum)
  
 

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