May 15, 2018 / 1:38 PM / 5 months ago

CANADA FX DEBT-C$ hits 6-day low vs stronger greenback amid NAFTA deadline doubts

    * Canadian dollar at C$1.2899, or 77.53 U.S. cents
    * The loonie hits a six-day low at C$1.2906
    * Bond prices lower across a steeper yield curve
    * 10-year yield touches a four-year high at 2.480 percent

    TORONTO, May 15 (Reuters) - The Canadian dollar hit a nearly
one-week low against its U.S. counterpart on Tuesday as the
greenback broadly rose and investors weighed prospects of a
deadline being met for a new NAFTA trade pact between Canada,
the United States and Mexico.    
    The U.S. dollar        rose against a basket of major
currencies as data showed a rise in U.S. retail sales and the
U.S. 10-year Treasury note yield climbed further above the 3
percent threshold to its highest since July 2011.
    Mexico's economy minister, Ildefonso Guajardo, said he does
not expect to meet a deadline set for Thursday to reach a new
North American Free Trade Agreement that could be presented to
the current U.S. Congress.             
    Canada sends about 75 percent of its exports to the United
States, so its economy could benefit if a NAFTA deal is reached.
    At 9:15 a.m. EDT (1315 GMT), the Canadian dollar         
was trading 0.7 percent lower at C$1.2899 to the greenback, or
77.53 U.S. cents. The loonie hit its weakest level since
Wednesday at C$1.2906.    
    Losses for the loonie came despite the price of oil, one of
Canada's major exports, rising to a 3-1/2-year high.
            
    U.S. crude        prices were up 0.75 percent at $71.49 a
barrel, supported by tight supply and planned U.S. sanctions
against Iran that are likely to restrict crude oil exports from
one of the biggest producers in the Middle East.
    Resales of Canadian homes fell 2.9 percent in April from
March to the lowest level in more than five years, the Canadian
Real Estate Association said.                     
    Canadian government bond prices were lower across a steeper
yield curve in sympathy with U.S. Treasuries. The two-year
           fell 4 Canadian cents to yield 2.017 percent and the
10-year             declined 41 Canadian cents to yield 2.473
percent.
    The 10-year yield touched its highest intraday since April
2014 at 2.480 percent.

 (Reporting by Fergal Smithd; editing by Jonathan Oatis)
  
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below