September 14, 2018 / 8:15 PM / 8 days ago

CANADA FX DEBT-C$ dips but on track to post biggest weekly gain in 3 months

    * Canadian dollar falls to 1.3037 to the greenback
    * Loonie on track to rise 1 percent for the week
    * Price of U.S. oil rises 0.6 percent
    * Bond prices move lower across much of a steeper yield
curve

    By Fergal Smith
    TORONTO, Sept 14 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Friday as the greenback rose
broadly, but the loonie was on course for its best weekly
performance in nearly three months.
    At 3:54 p.m. (1954 GMT), the Canadian dollar          was
trading 0.3 percent lower at 1.3037 to the greenback, or 76.70
U.S. cents.
    The currency, which on Thursday touched its strongest in two
weeks at 1.2976, traded in a range of 1.2984 to 1.3053.
    "Generally firmer" U.S. data and a lack of domestic impetus
weighed on the loonie, said Mark Chandler, head of Canadian
fixed income and currency strategy at RBC Capital Markets.
    The U.S. dollar        rose against a basket of currencies,
rebounding from a near 1-1/2-month low, as upbeat U.S. economic
data and higher Treasury yields rekindled some investor appetite
for the greenback.             
    The decline for the loonie came as U.S. President Donald
Trump instructed aides to proceed with tariffs on about $200
billion of Chinese products.             
    Canada exports many commodities and runs a current account
deficit, so its economy could be hurt if the global flow of
trade or capital slows. 
    Still, the loonie has been boosted this week by higher oil
prices and optimism that a deal to renew the North American Free
Trade Agreement will be reached. It has climbed 1 percent since
the start of the week, the most since late June.
    U.S. House of Representatives Democratic Leader Nancy Pelosi
warned the Trump administration that NAFTA should be maintained
as a trilateral pact between the United States, Mexico and
Canada and not just as a U.S.-Mexico arrangement.             
    The price of oil, one of Canada's major exports, was
supported by worries of more sanctions on Iran. U.S. crude oil
futures        settled 0.6 percent higher at $68.99 a barrel.
            
    Speculators have raised bearish bets on the Canadian dollar,
data from the U.S. Commodity Futures Trading Commission and
Reuters calculations showed. As of Sept. 11, net short positions
had increased to 26,942 contracts from 26,307 a week earlier.
    The ratio of Canadian household debt to income widened to
169.1 percent in the second quarter from an upwardly revised
168.3 percent in the first quarter, Statistics Canada said.
            
    Canadian government bond prices fell across much of a
steeper yield curve in sympathy with U.S. Treasuries. The
10-year             fell 13 Canadian cents to yield 2.343
percent.
    The 10-year yield touched its highest intraday since Aug. 8
at 2.365 percent.

 (Reporting by Fergal Smith; Editing by Steve Orlofsky and James
Dalgleish)
  
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