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)
© Thomson Reuters 2017 All rights reserved.