CANADA FX DEBT-Canadian dollar dips against US$ on lower oil prices

Tue Apr 7, 2015 4:26pm EDT
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(Updates with fresh comment, details, closing figures)
    * Canadian dollar at C$1.2504, or 79.97 U.S. cents
    * Bond prices mixed across the maturity curve

    By Solarina Ho
    TORONTO, April 7 (Reuters) - The Canadian dollar weakened on
Tuesday against the U.S. dollar, which recouped its losses from
Friday's dreary U.S. jobs report as traders returned from the
extended Easter weekend, but the Canadian currency remained an
outperformer against many of its major counterparts.
    The greenback's rally over the last few months stalled in
recent weeks as a string of U.S. economic data pointed to a
softer first quarter. Signs of a slowing economy have tempered
expectations of how soon the Federal Reserve will raise interest
rates, with many forecasting sometime in the second half of the
    "This is really more of a general U.S. dollar strength
story," said David Tulk, chief Canada macro strategist at TD
    "It's just a bit more reflection on the payrolls data we had
on Friday. As much as it disappointed, we don't want to read
too, too much into a single data point."
    The Canadian dollar finished the session at $1.2504
to the U.S. dollar, or 79.97 U.S. cents, softer than the Bank of
Canada's official close of C$$1.2478, or 80.14 U.S. cents.
    The U.S. dollar strength overshadowed a rally in crude
prices, tempering the loonie's moves. Canada is a major crude
    U.S. crude prices, which fell as low as $51.17 a
barrel earlier, settled at $53.98, while Brent crude 
settled at $59.10 as U.S. forecast lower crude production growth
and higher global demand. 
    Market focus will shift to minutes from the Federal
Reserve's most recent policy meeting, due on Wednesday, for
clues on the central bank's thinking.
    Domestically, the calendar will remain quiet until Friday,
when the Canadian employment figures for March will be released.
    Canadian government bond prices were mixed across the
maturity curve, with the two-year price down half a
Canadian cent to yield 0.505 percent and the benchmark 10-year
 rising 2 Canadian cents to yield 1.345 percent.
    The Canada-U.S. two-year bond spread stood at -1.5, while
the 10-year spread was -54.0.

 (Reporting by Solarina Ho; Editing by Paul Simao and Richard