February 15, 2019 / 3:09 PM / a month ago

CANADA FX DEBT-C$ tracks oil higher as investors weigh trade deal prospects

    * Canadian dollar rises 0.3 percent against the greenback
    * For the week, the loonie is on track to rise 0.2 percent 
    * Price of U.S. oil rises nearly two percent
    * Canadian home sales rise 3.6 percent in January
    * Canadian bond prices fall across the yield curve

    TORONTO, Feb 15 (Reuters) - The Canadian dollar strengthened
against its U.S. counterpart on Friday, performing better than
most of its peers, as oil prices rose and investors weighed
prospects of a trade deal between the United States and China
ahead of a March 1 deadline.
    U.S. stocks climbed as trade talks between the U.S. and
China advanced, although worries of a cooling domestic economy
kept a lid on gains.              
    Canada is a major producer of commodities, including oil, so
its economy could benefit from a U.S.-China trade deal that
reduces global economic uncertainty.
    U.S. crude oil futures        rose nearly two percent to
$55.47 a barrel as this week's announcement of a
higher-than-expected supply cut by Saudi Arabia encouraged
investors.             
    At 9:53 a.m. (1453 GMT), the Canadian dollar          was
trading 0.3 percent higher at 1.3262 to the greenback, or 75.40
U.S. cents. Among G10 currencies, only the New Zealand dollar
fared better.
    The loonie, which touched on Thursday its weakest intraday
level in nearly three weeks at 1.3340, traded in a range of
1.3257 to 1.3313. For the week, the loonie is on track to gain
0.2 percent.
    Canadian home sales rose 3.6 percent in January from the
previous month but remained below levels posted one year ago,
the Canadian Real Estate Association said on Friday.
            
    Separate data, from Statistics Canada, showed that foreign
investors sold a net C$18.96 billion in Canadian securities in
December, led by a record divestment in bonds. This was the
highest divestment since October 2007.             
    Canadian government bond prices were lower across the yield
curve in sympathy with U.S. Treasuries. The two-year           
fell 4 Canadian cents to yield 1.785 percent and the 10-year
            declined 27 Canadian cents to yield 1.908 percent.

 (Reporting by Fergal Smith
Editing by Nick Zieminski)
  
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