November 8, 2017 / 2:06 PM / 3 years ago

CANADA FX DEBT-C$ adds to gains after Poloz speech

    * Canadian dollar at C$1.2726, or 78.58 U.S. cents
    * Bond prices little changed across the yield curve
    * Prices of oil ease on drop in Chinese crude imports

    TORONTO, Nov 8 (Reuters) - The Canadian dollar strengthened
against its U.S. counterpart on Wednesday, adding to its gains
after comments by Bank of Canada Governor Stephen Poloz the day
before which were less dovish than investors had expected.
    In a speech and news conference, Poloz maintained a neutral
tone on the next interest rate move, repeating the bank's
message that it was monitoring wage growth and inflation, as
well as economic capacity to see how the economy was adjusting
to rate hikes in July and September.             
    The central bank held its benchmark rate steady at 1 percent
in October and investors expect no further increases until the
first half of 2018.           
    At 8:43 a.m. ET (1343 GMT), the Canadian dollar          was
trading at C$1.2726 to the greenback, or 78.58 U.S. cents, up
0.4 percent.
    The currency traded in a range of C$1.2723 to C$1.2777. It
has recovered from a 3-1/2 month low at C$1.2916 less than two
weeks ago.
    Canadian seasonally adjusted housing starts were 222,771 in
October, increasing from a revised 219,293 units in September.
    In separate domestic housing data, the value of building
permits rose by 3.8 percent in September from August, the first
increase in three months.             
    Prices of oil, one of Canada's major exports, eased as
Chinese crude imports fell to a one-year low, but losses were
partly offset by investor caution over rising political tensions
in the Middle East.             
    U.S. crude        prices were down 0.38 percent at $56.98 a
    The U.S. dollar        edged lower against a basket of major
currencies, weighed by worries over possible delays to U.S.
President Donald Trump's tax reform plans.             
    Canada will not be rushed into the Trans Pacific
Partnership, so as to ensure a deal that serves its best
interests, Prime Minister Justin Trudeau said on Wednesday.
    Canadian government bond prices were little changed across
the yield curve, with the two-year            flat to yield
1.399 percent and the 10-year             rising 4 Canadian
cents to yield 1.889 percent.

 (Reporting by Fergal Smith; Editing by Susan Thomas)
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