CANADA FX DEBT-C$ weaker in tight range as oil slips, data eyed

Mon Nov 2, 2015 4:30pm EST
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(New throughout, updates prices and market activity, adds
strategist comment)
    * Canadian dollar ends at C$1.3099, or 76.34 U.S. cents
    * Bond prices lower across the maturity curve

    By Alastair Sharp
    TORONTO, Nov 2 (Reuters) - The Canadian dollar weakened
slightly against its U.S. counterpart on Monday as oil prices
slipped, with the currency  trading in a tight range ahead of
domestic trade data and jobs numbers for Canada and the United
States later in the week.
    "It's consolidative around C$1.31 as we head into
Wednesday's trade numbers and Friday's payroll numbers," said
Jack Spitz, managing director of foreign exchange at National
Bank Financial.
    He said the currency faces a string of support levels and
likely renewed corporate and real money interest in the
$1.3040-C$1.3070 range. He said the Canadian dollar would be
pressured by any data supporting the argument for a U.S. Federal
Reserve rate hike next month. 
    "If we see weak data in Canada and strong data in the States
it could be worth 100 points higher in dollar/Canada," Spitz
said. "And I think that is the vulnerable side, certainly until
we see the Fed in December." 
    The Canadian dollar settled at C$1.3099 to the
greenback, or 76.34 U.S. cents, weaker than the Friday's
official close of C$1.3075, or 76.48 U.S. cents.
    The currency's strongest level of the session was C$1.3065,
while its weakest level was C$1.3117. It underperformed most of
its key currency counterparts.
    Oil prices fell after soft Chinese factory data raised
worries about energy demand in the world's second largest
economy, while record high Russian crude output suggested little
easing in the global supply glut.
    China's factory activity fell for an eighth straight month
in October but at a slower pace as export orders revived, a
private survey showed on Monday. 
    U.S. crude prices settled down 1 percent to $46.14,
while Brent crude lost 1.6 percent to $48.77. 
    Canadian government bond prices were lower across the
maturity curve, with the two-year down 1.5 Canadian
cents to yield 0.584 percent and the benchmark 10-year
 off 36 Canadian cents to yield 1.580 percent.