January 17, 2020 / 2:38 PM / 3 months ago

CANADA FX DEBT-Loonie trades near flat as BoC rate decision looms next week

    * Canadian dollar trades in a range of 1.3034 to 1.3058
    * Loonie was little changed for the week
    * Foreign investors sell Canadian securities in November, 
    * Canadian bond prices decline across the yield curve

    TORONTO, Jan 17 (Reuters) - The Canadian dollar was little
changed against its U.S. counterpart on Friday, extending its
recent holding pattern as the greenback broadly rose and
investors awaited an interest rate decision next week from the
Bank of Canada.
    The central bank is expected to leave its benchmark interest
rate on hold at 1.75% next Wednesday, when it will also update
its economic outlook.
    A revival in the Canadian economy may already be under way,
according to a Reuters poll of economists, who were mostly
confident a rate cut was not needed and so predicted monetary
policy would remain unchanged this year.             
    The U.S. dollar        gained ground against a basket of
major currencies, supported by data on Wednesday showing an
encouraging rise in U.S. retail sales data.             
    At 9:16 a.m. (1416 GMT), the Canadian dollar          was
trading nearly unchanged at 1.3044 to the greenback, or 76.66
U.S. cents. The currency, which has been in a sideways trading
pattern since hitting a near two-week low last Thursday at
1.3104, traded in a range of 1.3034 to 1.3058.
    For the week, the loonie was also little changed. 
    Global stocks          and the price of oil, one of Canada's
major exports, rose. They were buoyed by the signing this week
of a trade deal between the United States and China, while data
on Friday showed that China ended 2019 on a somewhat firmer
note.                         
    U.S. crude oil futures        were up 0.4% at $58.74 a
barrel.
    Foreign investors sold a net C$1.75 billion in Canadian
securities in November, led by private corporate instruments,
following a revised C$11.32 billion total purchase in October,
Statistics Canada said.             
    Canadian government bond prices were lower across the yield
curve, with the 10-year             falling 12 Canadian cents to
yield 1.567%.  

 (Reporting by Fergal Smith
Editing by Nick Zieminski)
  
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