March 27, 2017 / 9:03 PM / 6 months ago

CANADA FX DEBT-C$ little changed vs weaker greenback; Poloz awaited

 (Adds analyst quotes and updates prices)
    * Canadian dollar ends at C$1.3376, or 74.76 U.S. cents
    * Bond prices higher across a flatter yield curve
    * 10-year yield touches its lowest in nearly 4 months

    By Fergal Smith
    TORONTO, March 27 (Reuters) - The Canadian dollar was little
changed on Monday against its U.S. counterpart as lower oil
prices offset broadbased losses for the greenback, while
investors braced for a speech by Bank of Canada Governor Stephen
Poloz.
    Poloz is likely to be asked about the recent
better-than-expected economic performance in Canada when he
speaks on Tuesday. Tame inflation data on Friday indicated
little pressure for a rate hike.             
    "The market has been leaning itself ever so slightly towards
a softer bias for the Canadian dollar as we await for the Bank
of Canada governor, Poloz," said Amo Sahota, director at Klarity
FX.
    "As we know he tends to try to talk the currency down."     
    The U.S. dollar        tumbled as investors worried that
U.S. President Donald Trump's defeat over healthcare reform
foreshadowed difficulties delivering other key campaign
promises, in particular tax cuts.             
    Large tax cuts were "highly dependent on the savings from
replacing Obamacare," said RBC Capital Markets in a research
report.
    U.S. crude        prices settled 24 cents lower at $47.73 a
barrel, pressured by uncertainty over whether an Organization of
the Petroleum Exporting Countries-led production cut will be
extended beyond June in an effort to counter a glut of crude.
            
     Oil is one of Canada's major exports. 
    The Canadian dollar          ended at C$1.3376 to the
greenback, or 74.76 U.S. cents, slightly stronger than Friday's
close of C$1.3380, or 74.74 U.S. cents.
    The currency traded in a range of C$1.3322 to C$1.3405.
    Speculators have turned the most bearish on the Canadian
dollar since March 2016, data from the Commodity Futures Trading
Commission and Reuters calculations showed on Friday. Canadian
dollar positions swung sharply to net short 24,403 contracts as
of March 21 from net long 21,458 contracts a week earlier.
            
    Canadian government bond prices were higher across a flatter
yield curve, with the two-year            up 4 Canadian cents to
yield 0.73 percent and the 10-year             rising 33
Canadian cents to yield 1.602 percent.
    The 10-year yield touched its lowest intraday since Nov. 30.
at 1.563 percent.

 (Reporting by Fergal Smith; Editing by Nick Zieminski and Tom
Brown)
  
 

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