April 9, 2018 / 1:34 PM / 14 days ago

CANADA FX DEBT-C$ firms ahead of Bank of Canada survey as stocks rise

    * Canadian dollar at C$1.2772, or 78.30 U.S. cents
    * Oil price rises 1.3 percent
    * Bond prices mixed across the yield curve

    TORONTO, April 9 (Reuters) - The Canadian dollar edged
higher against its U.S. counterpart on Monday ahead of a report
that could help guide Bank of Canada interest rate expectations,
as lower trade tensions helped boost stock and oil prices.
    Stocks and the price of oil, one of Canada's major exports,
recovered after officials of the Trump administration stressed
the dispute with China could be resolved through talks.
                        
    Canada's commodity-linked economy could be hurt if trade
tensions slow global growth.
    U.S. crude        prices were up 1.3 percent at $62.88 a
barrel.
    The Bank of Canada will release its business outlook report,
based on a survey of about 100 companies, at 10:30 a.m. EDT
(1430 GMT).
    The central bank has raised interest rates three times since
July and money markets see a 75 percent chance of another hike
by July.           
    At 9:16 a.m. EDT (1316 GMT), the Canadian dollar         
was trading 0.1 percent higher at C$1.2772 to the greenback, or
78.30 U.S. cents.
    The currency traded in a range of C$1.2765 to C$1.2818. It
touched its strongest intraday on Friday in more than five weeks
at C$1.2732.
    Talks to rework the North American Free Trade Agreement are
not advanced enough for the United States, Mexico and Canada to
announce a deal "in principle" at this month's Summit of the
Americas in Lima, according to two people familiar with matter.
            
    Canada sends about 75 percent of its exports to the United
States. Upbeat comments by officials from the three countries
about the chances of a pact soon and stronger-than-expected
domestic jobs data helped boost the loonie 0.9 percent last
week.           
    Canadian government bond prices were mixed across the yield
curve, with the two-year            up 0.5 Canadian cent to
yield 1.788 percent and the 10-year             flat to yield
2.144 percent.  

 (Reporting by Fergal Smith
Editing by Nick Zieminski)
  
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