August 24, 2018 / 7:19 PM / 3 months ago

CANADA FX DEBT-C$ strengthens as U.S. Fed chief Powell stays the course

 (Adds strategist quotes and details throughout; updates prices)
    * Canadian dollar at C$1.3031, or 76.74 U.S. cents
    * U.S. oil prices rise 1.3 percent
    * Bank of Canada's Poloz due to give interview to CNBC
    * Canadian government bond prices dip across yield curve

    By Fergal Smith
    TORONTO, Aug 24 (Reuters) - The Canadian dollar strengthened
against its U.S. counterpart on Friday, recovering from an
earlier one-week low as oil prices rose and a speech by Federal
Reserve Chairman Jerome Powell helped boost stocks and weaken
the greenback.
    Equity markets rose globally and the U.S. dollar        fell
against a basket of other major currencies after Powell outlined
a steady, surprise-free  course for monetary policy in a speech
at the annual central bankers symposium in Jackson Hole,
Wyoming.             
    "This isn't a CAD specific move," said Brad Schruder,
director of corporate sales and structuring at BMO Capital
Markets. "The reaction today is really just an unwind of the bid
to the (U.S.) dollar that we saw yesterday."
    On Thursday, the loonie fell 0.6 percent as the greenback
broadly climbed.
    Investors could also get clues Friday on prospects for
further interest rate increases from the Bank of Canada. Its
governor, Stephen Poloz, is due to give an interview to CNBC
television at about 4:15 p.m. EDT (2015 GMT). On Saturday, Poloz
will participate in a panel discussion in Jackson Hole.
    "The market is going to be looking for any kind of signal
that a move from the Bank of Canada might happen sooner rather
than later," Schruder said. 
    The Canadian central bank hiked interest rates last month
for the fourth time in a year to leave its benchmark interest
rate at 1.50 percent. Money markets expect another hike by
October.           
    At 2:46 p.m. (1846 GMT), the Canadian dollar          was
trading 0.4 percent higher at C$1.3031 to the greenback, or
76.74 U.S. cents.
    The currency touched its weakest intraday since Aug. 17 at
C$1.3102. For the week, it was on track to rise 0.2 percent.
    The price of oil       , one of Canada's major exports,
settled 1.3 percent higher on signs that Iran sanctions may
limit global supply and that the U.S.-Chinese trade dispute  may
not curb China's appetite for U.S. crude.             
    Canada has its own trade feud with the United States and is
also in slow-moving talks to revamp the North American Free
Trade Agreement.
    U.S.-Mexico talks to craft a deal on new auto industry rules
under NAFTA will continue into the weekend, Mexico's economy
minister said on Friday. 
    Canadian government bond prices dipped across the yield
curve. The 10-year             declined 7 Canadian cents to
yield 2.268 percent. The yield touched its highest intraday
since Aug. 15 at 2.296 percent.

 (Reporting by Fergal Smith; Editing by Steve Orlofsky)
  
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