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CANADA FX DEBT-C$ notches 3-month high as investors bet on economic recovery

    * Canadian dollar rises 0.3% against the greenback
    * Loonie touches its strongest since March 4 at 1.3369
    * Canadian housing starts rise to 193,453 units in May 
    * Canadian bond yields were mixed across a flatter curve

    TORONTO, June 8 (Reuters) - The Canadian dollar strengthened
to a three-month high against its U.S. counterpart on Monday as
hopes of a quick economic rebound from the coronavirus crisis
offset lower oil prices.
    U.S. stocks rose, with the Nasdaq hitting a record high for
the second straight session, after a surprisingly upbeat jobs
report last week raised bets of a swift recovery from a
coronavirus-driven downturn.             
    Canada, which also reported surprisingly strong jobs data
last week             , sends about 75% of its exports to the
United States, including oil.
    U.S. crude oil futures        were down 3.4% at $38.20 a
barrel after Saudi Arabia said an extension of output cuts by
OPEC+ nations would not include extra voluntary cuts by a trio
of Gulf producers.             
    The Canadian dollar        was trading 0.3% higher at 1.3382
to the greenback, or 74.73 U.S. cents. The currency touched its
strongest intraday level since March 4 at 1.3369.
    Speculators have pared their bearish bets on the Canadian
dollar for a second straight week, data from the U.S. Commodity
Futures Trading Commission showed on Friday. As of June 2, net
short positions had fallen to 33,138 contracts from 33,954 in
the prior week.
    Canadian housing starts rose to a seasonally adjusted annual
rate of 193,453 units in May from 166,477 units in April, the
Canadian Mortgage and Housing Corporation said on Monday.
    Excluding Quebec, which was left out of the April survey
after construction in the province was disrupted by measures to
combat the pandemic, starts fell about 20% to 132,576 units.
            
    Canadian government bond yields were mixed across a flatter
curve, with the 10-year             down 2.8 basis points at
0.705%. On Friday, the 10-year yield touched its highest
intraday level since mid-April at 0.768%.

 (Reporting by Fergal Smith
Editing by Marguerita Choy)
  
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