April 27, 2018 / 9:17 PM / in 4 months

CANADA FX DEBT-C$ recovers from 3-week low, slips 0.4 pct for week

 (Adds portfolio manager quotes, details on market activity;
updates prices)
    * Canadian dollar at C$1.2831, or 77.94 U.S. cents
    * Loonie hits a three-week low at C$1.2900
    * Canadian bond prices rise across a flatter yield curve

    TORONTO, April 27 (Reuters) - The Canadian dollar
strengthened against its U.S. counterpart on Friday but still
declined 0.4 percent for the week as recent comments from the
Bank of Canada weighed on the currency and higher U.S. Treasury
yields boosted the greenback.
    At 4 p.m. EDT (2000 GMT), the Canadian dollar          was
trading 0.3 percent higher at C$1.2831 to the greenback, or
77.94 U.S. cents. It touched its weakest since April 3 at
C$1.2900.
    "We had over the last few days some dovish statements coming
out of the Bank of Canada," said Hosen Marjaee, senior managing
director, Canadian fixed income at Manulife Asset Management.
    "They became a bit more concerned about the strength of the
Canadian economy, so that took away some expected rate hikes out
of the curve and that pushed the Canadian dollar weaker."
    The loonie has declined more than two percent since the Bank
of Canada last week held its benchmark interest rate steady at
1.25 percent and said it did not know when or how aggressive it
would need to be to keep inflation in check.             
    The central bank has worried about uncertainties that could
hurt the economy, including a shift toward protectionist global
trade policies.
    Negotiators trying to hammer out a quick deal to revamp the
North American Free Trade Agreement said they will take a break
until May 7, allowing time for consultations with the auto
industry in Mexico and for U.S. Trade Representative Robert
Lighthizer to visit China.             
    Speculators have trimmed bearish bets on the Canadian dollar
for the third straight week, data from the U.S. Commodity
Futures Trading Commission and Reuters calculations showed. As
of April 24, net short positions had fallen to 25,144 contracts
from 30,324 a week earlier.                    
    U.S. crude oil futures        settled 0.1 percent lower at
$68.10 a barrel. Oil is one of Canada's major exports.
            
    The U.S. dollar        held steady despite a government
report showing slower U.S. first-quarter economic growth, with
the currency on track to end its strongest week since November
2016.             
    Canadian government bond prices were higher across a flatter
yield curve in sympathy with U.S. Treasuries as investors
worried about the strength of the global economy.             
    The two-year            rose 3.5 Canadian cents to yield
1.896 percent and the 10-year             climbed 27 Canadian
cents to yield 2.321 percent.

 (Reporting by Fergal Smith; editing by Jonathan Oatis and James
Dalgleish)
  
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below