December 11, 2017 / 2:31 PM / a year ago

CANADA FX DEBT-C$ near flat ahead of Fed decision, Poloz speech

    * Canadian dollar at C$1.2857, or 77.78 U.S. cents
    * Bank of Canada Governor Stephen Poloz due to speak on
Thursday
    * Bond prices slightly higher across the yield curve

    TORONTO, Dec 11 (Reuters) - The Canadian dollar was little
changed against its U.S. counterpart on Monday as investors
turned attention to both a Federal Reserve interest rate
decision and a speech by Bank of Canada Governor Stephen Poloz
later in the week.
    The Canadian currency lost 1.3 percent last week after the
central bank struck a more dovish tone than investors had
expected as it left its benchmark interest rate steady at 1
percent.             
    Poloz will discuss on Thursday the issues that keep him
awake at night.
    The Fed is widely expected to raise interest rates at a
two-day policy meeting that will end on Wednesday, and is seen
possibly tightening two or three times in 2018.             
    At 9:14 a.m. ET (1414 GMT), the Canadian dollar          was
little changed at C$1.2857 to the greenback, or 77.78 U.S.
cents.
    The currency traded in a narrow range of C$1.2832 to
C$1.2868. On Friday, it touched its weakest in one week at
C$1.2880.
    Speculators have trimmed bullish bets on the Canadian
dollar, data from the U.S. Commodity Futures Trading Commission
and Reuters calculations showed on Friday. As of Dec. 5, net
long positions had slipped to 42,466 contracts from 45,658 a
week earlier.
    North American Free Trade Agreement negotiators convene in
Washington next week for a limited round of talks unlikely to
move the needle on major sticking points but aimed at
demonstrating some progress toward closing easier
chapters.            
    The price of oil, one of Canada's major exports, edged
higher as investors weighed Organization of the Petroleum
Exporting Countries-led output cuts and rising U.S. drilling
activity.             
    U.S. crude        prices were up 0.40 percent at $57.59 a
barrel.     
    Canadian government bond prices were slightly higher across
a flatter yield curve, with the two-year            up 1
Canadian cent to yield 1.498 percent and the 10-year            
rising 10 Canadian cents to yield 1.849 percent.
    The gap between Canada's two-year yield and its U.S.
equivalent widened by 0.9 of a basis point to -30.5 basis
points.

 (Reporting by Fergal Smith; Editing by Bill Trott)
  
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