CANADA FX DEBT-C$ strengthens as risk appetite and oil rise

Fri Oct 14, 2016 9:45am EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

* Canadian dollar at C$1.3168, or 75.94 U.S. cents
    * Loonie on course to rise 0.9 percent for the week
    * Bond prices lower across steeper maturity curve

    TORONTO, Oct 14 (Reuters) - The Canadian dollar strengthened
against its U.S. counterpart on Friday as stronger-than-expected
Chinese inflation data helped restore risk appetite and oil
rose.    
    A pickup in China's consumer prices helped ease investors'
concerns about the health of the world's second-largest economy
after disappointing trade numbers on Thursday rattled global
markets.     
    The U.S. dollar held its earlier gains versus a
basket of currencies on Friday as data on U.S. retail sales and
producer prices in September supported the view of a modest U.S.
economic expansion.
    U.S. crude prices were up 0.38 percent at $50.63 a
barrel, supported by a drop in U.S. fuel inventories, though
gains were kept in check by ample crude supplies even as OPEC
plans to cut output. 
    The loonie's normally tight link with the price of oil, one
of Canada's major exports, has weakened ahead of the U.S.
presidential election and a potential interest rate hike by the
Federal Reserve. 
    At 9:24 a.m. EDT (1324 GMT), the Canadian dollar 
was trading at C$1.3168 to the greenback, or 75.94 U.S. cents,
stronger than Thursday's close of C$1.3205, or 75.73 U.S. cents.
    The currency's weakest level of the session was C$1.3225,
while it touched its strongest since Monday at C$1.3153.
    For the week, the loonie was on course to rise 0.9 percent.
Much of the gain came on Thursday as investors who got short the
currency following China's weak trade data were forced to cover
their positions as oil and U.S. stocks rebounded from session
lows.
    Sales of existing Canadian homes rose 0.8 percent in
September from August, a report from the Canadian Real Estate
Association showed. 
    Canadian government bond prices were lower across a steeper
yield curve in sympathy with U.S. Treasuries. The two-year
 fell 3.5 Canadian cents to yield 0.616 percent and
the benchmark 10-year declined 30 Canadian cents to
yield 1.213 percent.
    The Belgian fortress city of Namur, besieged by European
armies down the centuries, issued a declaration of war on the
global economic order on Friday with a vote to reject a planned
EU-Canada free trade agreement. 

 (Reporting by Fergal Smith; Editing by Phil Berlowitz)