May 7, 2018 / 1:33 PM / 2 months ago

CANADA FX DEBT-C$ dips vs stronger greenback as NAFTA talks enter key week

    * Canadian dollar at C$1.2868, or 77.71 U.S. cents
    * Price of oil rises 1.2 percent
    * Bond prices mixed across flatter yield curve

    TORONTO, May 7 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Monday as the greenback broadly
rose and talks to update the NAFTA trade deal entered a
make-or-break week.
    Ministers from Canada, the United States and Mexico meet in
Washington on Monday to discuss the North American Free Trade
Agreement, and will seek to resolve an impasse in key areas
before elections in Mexico and the United States complicate the
process.             
    The U.S. dollar        climbed back towards its highest
level in 2018 as investors continued to bet that rising interest
rates in the United States would boost the greenback.
            
    At 9:19 a.m. EDT (1319 GMT), the Canadian dollar         
was trading 0.2 percent lower at C$1.2868 to the greenback, or
77.71 U.S. cents.
    The currency traded in a range of C$1.2840 to C$1.2890. It
hit a one-month low on Friday at C$1.2918.
    The loonie lost ground on Monday even as the price of oil,
one of Canada's major exports, rose to its highest since late
2014, boosted by fresh troubles for Venezuelan oil company PDVSA
and a looming decision on whether the United States will
re-impose sanctions on Iran.             
    U.S. crude        prices were up 1.2 percent at $70.54 a
barrel.
    The world's growing economies will have to find ways to cope
with an end of central bank stimulus, said Bank of Canada Deputy
Governor Timothy Lane.             
    Canadian government bond prices were mixed across a flatter
yield curve, with the two-year            down 0.5 Canadian cent
to yield 1.913 percent and the 10-year             rising 7
Canadian cents to yield 2.320 percent.
    Canada's jobs report for April is due on Friday.

 (Reporting by Fergal Smith; Editing by David Gregorio)
  
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