November 28, 2019 / 2:39 PM / 17 days ago

CANADA FX DEBT-C$ keeps to narrow range as investors weigh U.S.-China tensions

    * Canadian dollar trades near flat against the greenback
    * Price of U.S. oil falls 0.5%
    * Canada's current account deficit widens to C$9.86 billion
    * Canadian bond prices edge higher across the yield curve

    TORONTO, Nov 28 (Reuters) - The Canadian dollar was little
changed against its U.S. counterpart on Thursday, sticking to a
narrow range as oil prices fell on U.S.-China tensions and data
showed widening in Canada's current account deficit.
    Canada's current account deficit widened to C$9.86 billion
in the third quarter from a revised C$6.74 billion deficit in
the second quarter, on a higher deficit on goods, Statistics
Canada said. Analysts had forecast a deficit of C$9 billion.
            
    Separate data from Statistics Canada showed that average
weekly earnings of non-farm payroll employees rose at an annual
rate of 4% in September, while the number of payroll employees
declined by 28,000 for the month.
    Canada's gross domestic product for the third quarter is due
on Friday, which can help guide expectations for next week's
interest rate decision by the Bank of Canada.
    The central bank is now seen leaving rates on hold through
to the end of next year, according to a slim majority of
economists in a Reuters poll.             
    The price of oil, one of Canada's major exports, fell for a
second day after official data showed U.S. crude and gasoline
stocks rose and President Donald Trump signed into law a bill
backing protesters in Hong Kong, fuelling tensions with China.
    U.S. crude oil futures        were down 0.5% at $57.84 a
barrel.
    At 9:15 a.m. (1415 GMT), the Canadian dollar          was
trading nearly unchanged at 1.3287 to the greenback, or 75.26
U.S. cents. The currency traded in a narrow range of 1.3278 to
1.3299.
    U.S. markets are closed for Thanksgiving, which could
constrain investor activity.
    Canadian government bond prices were slightly higher across
the yield curve, with the two-year            up 1 Canadian cent
to yield 1.596% and the 10-year             rising 5 Canadian
cents to yield 1.469%.  

 (Reporting by Fergal Smith
Editing by Alistair Bell)
  
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