CANADA FX DEBT-C$ slips to two-week low as greenback rallies
* Canadian dollar at C$1.2372 or 80.83 U.S. cents * Bond prices mostly lower across the maturity curve TORONTO, June 23 (Reuters) - The Canadian dollar weakened to about a two-week low against the U.S. dollar on Tuesday, pressured by a rallying greenback and a slide in prices for crude oil, a major Canadian export. The U.S. dollar climbed to its highest level in more than 1-1/2 weeks against a basket of currencies as U.S. Treasury yields made gains across the board. With no Canadian economic data to drive the market this week, the loonie's direction will continue to be dictated by external forces. * At 9:28 a.m. EDT (1328 GMT), the Canadian dollar was trading at C$1.2372 to the greenback, or 80.83 U.S. cents, softer than the Bank of Canada's official close of C$1.2326, or 81.13 U.S. cents, on Monday. * The Canadian dollar had traded between C$1.2309 and C$1.2383 so far in the session. * A gauge of U.S. business investment spending plans rose in May, offering a tentative sign of stabilization in a sector that had weakened since last summer. Figures were nonetheless weaker than economists had anticipated. * In oil markets, optimism that a deal will be reached between Greece and its creditors was offset by the stronger greenback and expectations for a global crude surplus. U.S. crude was down 1.16 percent at $59.68 a barrel, while Brent crude lost 0.69 percent to $62.9. * The Canadian dollar, which was still stronger than many of its key currency counterparts despite its weakness against the greenback, was expected to trade between C$1.2310 and C$1.2400 on Tuesday, according to National Bank Financial. * Canadian government bond prices were mostly lower across the maturity curve, with the two-year price down 1.5 Canadian cents to yield 0.631 percent and the benchmark 10-year falling 45 Canadian cents to yield 1.854 percent. * The Canada-U.S. two-year bond spread was -5.5 basis points, while the 10-year spread was -57.2 basis points. (Reporting by Solarina Ho; Editing by Peter Galloway)
© Thomson Reuters 2017 All rights reserved.