November 20, 2017 / 2:46 PM / 5 months ago

CANADA FX DEBT-C$ dips as oil falls, investors weigh NAFTA talks

    * Canadian dollar at C$1.2776, or 78.27 U.S. cents
    * Oil falls 0.76 percent
    * Bond prices lower across the yield curve

    TORONTO, Nov 20 (Reuters) - The Canadian dollar edged lower
against its U.S. counterpart on Monday as oil prices fell and
investors focused on negotiations to update the North American
Free Trade Agreement.
    Oil, one of Canada's major exports, eased as traders were
wary of betting too heavily on which way prices might move ahead
of next week's meeting of the Organization of the Petroleum
Exporting Countries.             
    U.S. crude        was down 0.76 percent at $56.12 a barrel.
    Canada and Mexico will not make counterproposals to U.S.
demands for tougher NAFTA automotive content rules but instead
will offer rebuttals and ask technical questions on Monday,
people familiar with the talks said.             
    At 9:17 a.m. ET (1417 GMT), the Canadian dollar          was
down 0.1 percent at C$1.2776 to the greenback, or 78.27 U.S.
cents.
    The currency traded in a narrow range of C$1.2756 to
C$1.2800.
    On Friday, the loonie touched a two-week low at C$1.2824
after tame inflation data tempered prospects for the Bank of
Canada to raise interest rates in the first quarter of next
year.             
    Plans by Canada's central bank to add more speeches from
policymakers to its schedule after an interest rate decision
will not do enough to provide clearer guidance on monetary
policy, analysts said.                 
    Speculators have cut bullish bets on the Canadian dollar,
data from the U.S. Commodity Futures Trading Commission and
Reuters calculations showed on Friday.              
    As of Tuesday, net long positions had slipped to 47,335
contracts from 50,889 a week earlier. In October, bullish bets
had reached 76,392 contracts, their highest in five years.
    Canadian government bond prices were lower across the yield
curve, with the two-year            down 3 Canadian cents to
yield 1.473 percent and the 10-year             falling 14
Canadian cents to yield 1.955 percent.
    Canadian wholesale trade for September is due on Tuesday,
and retail sales data for that month is set for release on
Thursday.

 (Reporting by Fergal Smith; Editing by Lisa Von Ahn)
  
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