November 15, 2016 / 3:03 PM / in a year

CANADA FX DEBT-C$ rises for first time since U.S. election as oil rallies

* Canadian dollar at $1.3516, or 73.99 U.S. cents
    * Bond prices higher across the maturity curve

    TORONTO, Nov 15 (Reuters) - The Canadian dollar strengthened
against its U.S. counterpart on Monday as oil rallied, with the
loonie posting gains for the first time since the U.S. election
last week.
    Oil prices bounced back from multi-month lows on
expectations that OPEC will agree later this month to cut
production to reduce a supply glut. U.S. crude prices
were up 3.16 percent to $44.69 a barrel. 
    The Canadian dollar has given up almost 50 percent of its
gains from January to May. The 50 percent retracement at
C$1.3575 is a level being watched by analysts. It is seen as a
point for the market to pause and reassess the outlook for the
currency.
    The U.S. dollar held onto recent gains against a
basket of major currencies as U.S. retail sales rose more than
expected in October, pointing to sustained economic strength
that could allow the Federal Reserve to raise interest rates
next month. 
    At 9:43 a.m. EDT (1443 GMT), the Canadian dollar 
was trading at C$1.3516 to the greenback, or 73.99 U.S. cents,
stronger than Monday's close of C$1.3551, or 73.80 U.S. cents.
    The currency's strongest level of the session was C$1.3490,
while its weakest was C$1.3563.    
    On Monday, the loonie touched its weakest in eight months at
C$1.3589 before some losses were pared.
    Canadian home prices rose in October as continued strength
in Ontario, the most populous province, offset the first decline
in Vancouver in almost two years, the Teranet-National Bank
Composite House Price Index showed. 
    In separate data, sales of existing Canadian homes rose 2.4
percent in October from September, a report from the Canadian
Real Estate Association showed.      
    Canadian government bond prices were higher across the yield
curve, with the two-year up 0.5 Canadian cent to
yield 0.668 percent and the benchmark 10-year rising
24 Canadian cents to yield 1.524 percent.
    On Monday, the 10-year yield touched its highest in 11
months at 1.591 percent as investors bet that U.S.
President-elect Donald Trump will pursue policies that raise
inflation.

 (Reporting by Fergal Smith; Editing by Nick Zieminski)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below