June 8, 2018 / 12:16 PM / 6 months ago

CANADA FX DEBT-C$ slips ahead of domestic jobs data, G7 meeting

    * Canadian dollar at C$1.2994, or 76.96 U.S. cents
    * Price of U.S. oil falls 0.6 percent
    * Bond prices higher across the yield curve

    TORONTO, June 8 (Reuters) - The Canadian dollar retreated
against its broadly stronger U.S. counterpart on Friday, ahead
of domestic jobs data and the G7 meeting and after a projected
election win in Ontario for the Progressive Conservative Party. 
  
    Canada's employment report for May, due at 8:30 a.m. EDT,
can help guide expectations for another Bank of Canada interest
rate hike as soon as next month.
    Money markets see about a 70 percent chance of a rate
increase in July by the central bank, which has raised the rate 
three times since last summer.           
    The Group of Seven meeting of rich nations is almost certain
to be marked by the clash of a combative U.S. President Donald
Trump and other leaders on Friday when they pressure him to lift
sanctions on steel and aluminum they fear could lead to a trade
war.             
    Stocks and other risk-sensitive assets, including the
commodity-linked Canadian dollar, lost ground ahead of the
meeting.             
    At 7:53 a.m. EDT (1153 GMT), the Canadian dollar         
was trading 0.2 percent lower at C$1.2994 to the greenback, or
76.96 U.S. cents. The currency traded in a range of C$1.2970 to
C$1.3029.        
     The price of oil, one of Canada's major exports, fell as
weakening demand in China and surging U.S. output weighed on
markets. U.S. crude        prices were down 0.6 percent at
$65.59 a barrel.                 
    The Conservatives, led by populist Doug Ford, are on track
for a sweeping victory in Canada's most populous province,
Canadian networks projected on Thursday, as Ford declared the
province is "open for business."             
    Investors are searching for an economic blueprint for the
right-leaning party, whose victory ends 15 years of Liberal
rule.             
    The yield on Ontario's 10-year bond was 1.1 basis point
lower at 2.938 percent, while the gap between it and the yield
on the equivalent maturity Quebec bond was little changed at
about 5.5 basis points.
    Canadian government bond prices were higher across the yield
curve, with the two-year            up 2 Canadian cents to yield
1.901 percent and the 10-year             rising 10 Canadian
cents to yield 2.273 percent.

 (Reporting by Fergal Smith; Editing by  Steve Orlofsky)
  
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