January 14, 2020 / 7:52 PM / 7 months ago

CANADA FX DEBT-Loonie sticks to sideways pattern, awaiting global catalyst

 (Adds dealer quotes and details throughout; updates prices)
    * Canadian dollar little changed against greenback
    * Loonie trades in range of 1.3047 to 1.3080
    * Price of U.S. oil increases 0.3%
    * Canadian bond prices rise across flatter yield curve

    By Fergal Smith
    TORONTO, Jan 14 (Reuters) - The Canadian dollar was little
changed against its U.S. counterpart on Tuesday, extending its
sideways pattern since last week as investors looked to
corporate earnings and the contents of a U.S.-China trade deal
to provide fresh impetus.
    At 2:29 p.m. (1929 GMT), the Canadian dollar          was
trading nearly unchanged at 1.3052 to the greenback, or 76.62
U.S. cents. The currency, which last Thursday hit a near
two-week low at 1.3104, traded in a range of 1.3047 to 1.3080. 
    "There is not a lot of CAD specific information out there,"
said Brad Schruder, director of corporate sales and structuring
at BMO Capital Markets. "I think the loonie over the coming
weeks is going to be very much at the mercy of global
sentiment."
    Catalysts that could move the loonie include the U.S.
corporate earnings season and the Phase 1 trade deal between the
United States and China, should its contents surprise investors,
Schruder said.
    China has pledged to buy almost $80 billion of additional
manufactured goods from the United States over the next two
years as part of a trade deal to be signed on Wednesday in
Washington, according to a Reuters source.             
    Canada runs a current account deficit and is a major
exporter of crude oil, so its economy could benefit from a
pick-up in the global flow of trade or capital.
    Oil prices rose after declining for five days on easing
Middle East tensions. U.S. crude oil futures        were up 0.3%
at $58.24 a barrel.                 
    On Monday, a quarterly business survey from the Bank of
Canada showed sentiment was "broadly positive," cementing
expectations for it to leave its benchmark interest rate on hold
next week at 1.75%.
    "The Canadian central bank view I think is well understood
by both domestic and international players, in that the Bank of
Canada is firmly in the wait and see camp," said Schruder.
    The central bank has stayed on the sidelines since October
2018 even as some other major central banks have eased. Its
stance has helped support the loonie, which was the
top-performing G10 currency in 2019 with a gain of 5%.
    Canadian government bond prices were higher across a flatter
yield curve on Tuesday in sympathy with U.S. Treasuries as U.S.
data showed consumer prices rose moderately in December.
    The 10-year             was up 16 Canadian cents to yield
1.593%.

 (Reporting by Fergal Smith; Editing by Bernadette Baum and Tom
Brown)
  
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