CANADA FX DEBT-C$ weakens to 7-week low as oil falls
(Adds analyst quotes and details on U.S. election and other North American currencies, updates prices) * Canadian dollar ends at C$1.3197, or 75.77 U.S. cents * Loonie touches its weakest since July 27 at C$1.3209 * Bond prices higher across the maturity curve By Fergal Smith TORONTO, Sept 14 (Reuters) - The Canadian dollar weakened to a seven-week low against its U.S. counterpart on Wednesday as oil prices fell, while uncertainty related to the U.S. election weighed on North American currencies. Oil prices fell as data showing large weekly builds in U.S. petroleum products offset a surprise draw in crude stockpiles. U.S. crude oil futures settled $1.32 lower at $43.58 a barrel. Divergence of central bank monetary policy and uncertainty related to the upcoming U.S. presidential election are also drivers for the Canadian dollar, said Jack Spitz, managing director of foreign exchange at National Bank Financial. "The volatility that surrounds the change in the (U.S.) presidency, really in many respects has not yet been discounted into the market," Spitz said. Mexico's peso also weakened against the U.S. dollar, while the greenback fell against a basket of major currencies . The Canadian dollar ended at C$1.3197 to the greenback, or 75.77 U.S. cents, slightly weaker than Tuesday's close of C$1.3170, or 75.93 U.S. cents. The strongest level of the session for the currency was C$1.3128, while it touched its weakest since July 27 at C$1.3209. The U.S. economy looks set to accelerate over the rest of the year, a senior Bank of Canada official said on Wednesday, a potentially encouraging sign for Canada just a week after the central bank warned of risks to domestic growth. Austrian Chancellor Christian Kern's opposition to a free trade agreement between the European Union and Canada was countered by fervent praise for the deal from his deputy at a special parliamentary session on the matter. On Monday, Canadian Trade Minister Chrystia Freeland said her country was working toward signing a new trade agreement with the European Union in October. Canadian government bond prices were higher across the yield curve, with the two-year up 3.5 Canadian cents to yield 0.583 percent and the benchmark 10-year rising 40 Canadian cents to yield 1.187 percent. Earlier in the session, the 10-year yield touched its highest since June 23 at 1.281 percent. Canadian home prices climbed 11.4 percent in August from a year earlier, data showed. Leading the gains were the two hottest markets, Vancouver and Toronto, where prices have more than doubled in just over 11 years. (Editing by Lisa Von Ahn and James Dalgleish)
© Thomson Reuters 2017 All rights reserved.