December 13, 2018 / 3:11 PM / 5 months ago

CANADA FX DEBT-C$ dips against stronger greenback, as oil prices fall

    * Canadian dollar weakens 0.1 percent against the greenback
    * Price of U.S. oil falls 0.6 percent
    * Canadian new home prices were unchanged in October
    * Canadian bond prices trade higher across much of the yield
curve

    TORONTO, Dec 13 (Reuters) - The Canadian dollar edged lower
against its U.S. counterpart on Thursday, paring some of the
previous day's gains as oil prices fell and the greenback
broadly climbed.
    The U.S. dollar        rose against a basket of major
currencies after the European Central Bank trimmed its growth
and inflation projections for next year, pressuring the euro.
            
    The price of oil, one of Canada's major exports, fell after
data on Wednesday showed a smaller-than-expected drawdown in
U.S. crude stockpiles. U.S. crude oil futures        were down
0.6 percent at $50.86 a barrel.             
    At 9:58 a.m. (1458 GMT), the Canadian dollar          was
trading 0.1 percent lower at 1.3369 to the greenback, or 74.80
U.S. cents. The currency traded in a range of 1.3344 to 1.3383.
    On Wednesday, the Canadian dollar strengthened against its
U.S. counterpart as stocks rose on optimism over trade
negotiations between the United States and China.
    Stocks held onto those gains on Thursday, with investors
increasingly taking a wait-and-see approach as the United States
and China make progress on resolving their bitter trade dispute.
            
    Canadian businessman Michael Spavor, who worked with North
Korea, is being investigated on suspicion of harming China's
security, China said, days after a former Canadian diplomat was
detained in an escalating diplomatic dispute.             
    In domestic data, new home prices were unchanged in October
for the third month in a row, Statistics Canada said.
            
    Last week the Bank of Canada said that "regional housing
markets appear to be stabilizing following a significant
slowdown in recent quarters." Still, the central bank, which has
raised interest rates five times since July 2017, suggested the
pace of future hikes could be more gradual.             
    Canadian government bond prices were higher on Thursday
across much of the yield curve, with the 10-year            
rising 23 Canadian cents to yield 2.107 percent. Last Thursday,
the 10-year yield touched its lowest in nearly one year at 2.026
percent.

 (Reporting by Fergal Smith; editing by Jonathan Oatis)
  
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