June 20, 2016 / 1:42 PM / in 4 years

CANADA FX DEBT-C$ strengthens to 1-week high as oil rallies, Brexit fears ease

* Canadian dollar at C$1.2779, or 78.25 U.S. cents
    * Loonie touched its strongest since June 13 at $1.2778
    * Bond prices lower across a steeper maturity curve

    TORONTO, June 20 (Reuters) - The Canadian dollar
strengthened to a one-week high against its broadly weaker U.S.
counterpart on Monday, tracking oil and stocks higher as worries
eased that Britons will vote to leave the European Union and
offset disappointing domestic data.
    Global stocks rose and oil rallied after polls showed
support for Britain staying in the EU regaining momentum before
Thursday's referendum. 
    U.S. crude prices were up 2.06 percent to $48.97 a
barrel, supportive of Canada's risk-sensitive commodity-linked
    At 9:26 a.m. EDT (1326 GMT), the Canadian dollar 
was trading at C$1.2779 to the greenback, or 78.25 U.S. cents,
stronger than Friday's close of C$1.2878, or 77.65 U.S. cents.
    The currency's weakest level of the session was C$1.2878,
while it touched its strongest since June 13 at $1.2778.
    The value of Canadian wholesale trade rose 0.1 percent in
April, far less than expected, data from Statistics Canada
showed. Volumes rose by 0.2 percent. It was the latest sign that
the second quarter began on weak footing. 
    Speculators cut bullish bets on the loonie for the second
straight week, Commodity Futures Trading Commission data showed
on Friday. Net long Canadian dollar positions fell to 18,440
contracts in the week ended June 14 from 21,537 contracts in the
prior week.
    Canadian government bond prices were lower across a steeper
maturity curve in sympathy with Treasuries as investor appetite
waned for safe-haven assets.
    The two-year price fell 5.5 Canadian cents to
yield 0.548 percent and the benchmark 10-year 
dropped 65 Canadian cents to yield 1.188 percent.
    Last week, the 10-year yield hit a four-month low at 1.052
    Canadian retail sales data is awaited on Wednesday. Retail
sales are expected to have climbed by 0.9 percent in April after
falling in March. 

 (Reporting by Fergal Smith; Editing by Nick Zieminski)
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