November 7, 2017 / 2:44 PM / 3 years ago

CANADA FX DEBT-C$ weakens against firmer greenback ahead of Poloz speech

    * Canadian dollar at C$1.2777, or 78.27 U.S. cents
    * Bond prices higher across the yield curve
    * Speech due from Bank of Canada Governor Stephen Poloz

    TORONTO, Nov 7 (Reuters) - The Canadian dollar weakened
against its broadly firmer U.S. counterpart on Tuesday ahead of
a speech by Bank of Canada Governor Stephen Poloz and as oil
prices dipped.
    At 9:21 a.m. ET (1421 GMT), the Canadian dollar          was
trading at C$1.2777 to the greenback, or 78.27 U.S. cents, down
0.6 percent.
    The currency traded in a range of C$1.2703 to C$1.2783. On
Monday, it touched its strongest in 12 days at C$1.2701.
    Poloz will discuss central banks' ability to understand
inflation, with investors looking for clues on the timing of
further interest rate increases.
    The Bank of Canada is expected to hold rates steady in
December after raising them twice earlier this year. But data
last Friday showing unexpected strength in the nation's job
market has supported expectations of increases next year.
    The central bank will release Poloz's prepared remarks at
12:55 p.m. ET (1755 GMT) and the governor will hold a press
conference at 2 p.m. ET.
    The U.S. dollar        gained against a basket of major
currencies as investors added bets that monetary policy will
continue to diverge between the United States and the euro zone
and as buoyant risk appetite weighed on the safe haven Japanese
yen        and Swiss franc       .             
    Prices of oil, one of Canada's major exports, eased after
having risen the most in six weeks the previous day as the Saudi
crown prince tightened his grip on power, and tensions flared
between Saudi Arabia and Iran.             
    U.S., Mexican and Canadian officials will kick off some of
the next round of talks to rework the North American Free Trade
Agreement slightly ahead of schedule on Nov. 15, four officials
familiar with the process said on Monday.             
    Canada sends about 75 percent of its exports to the United
States and its economy could suffer if NAFTA collapses.
    Canadian government bond prices were higher across the yield
curve, with the two-year            up 3 Canadian cents to yield
1.404 percent and the 10-year             rising 16 Canadian
cents to yield 1.908 percent, the lowest since Sept. 6.
    Pricing is expected today for a new global issue by the
government of Canada of U.S. dollar-denominated bonds that
mature in November 2022, Thomson Reuters IFR said.

 (Reporting by Fergal Smith; Editing by Steve Orlofsky)
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