June 24, 2019 / 1:57 PM / 25 days ago

CANADA FX DEBT-Loonie adds to last week's rally ahead of G20 meeting

    * Canadian dollar rises 0.2% against the greenback
    * Price of U.S. oil increases 0.4%
    * Canadian bond prices gain across the yield curve

    TORONTO, June 24 (Reuters) - The Canadian dollar
strengthened against its U.S. counterpart on Monday, adding to
last week's gains ahead of a meeting this week between the
Chinese and U.S. presidents, as oil prices climbed and the
greenback broadly weakened.
    The U.S. dollar        fell against its rivals after
sustaining its biggest weekly drop in four months last week as
the Federal Reserve opened the doors for a rate cut as early as
next month.             
    The price of oil, one of Canada's major exports, extended
large gains last week that were prompted by tensions between
Iran and the United States, as Washington was set to announce
new sanctions on Tehran. U.S. crude oil futures        were up
0.4% at $57.63 a barrel.                 
    At 9:24 a.m. (1324 GMT), the Canadian dollar          was
trading 0.2% higher at 1.3199 to the greenback, or 75.76 U.S.
cents. The currency, which rose 1.4% last week, traded in a
range of 1.3178 to 1.3220.
    Gains for the loonie came as global stocks          were
buoyed by hopes that a meeting later this week between
presidents Donald Trump and Xi Jinping at the G20 summit in
Japan would de-escalate a trade war that is damaging the global
economy.             
    Canada runs a current account deficit, so its economy could
benefit from an improved flow of global trade or capital.    
    Meanwhile, data from the U.S. Commodity Futures Trading
Commission and Reuters calculations showed on Friday that
speculators have raised their bearish bets on the Canadian
dollar for the first time in five weeks. As of June 18, net
short positions had increased to 38,071 contracts from 32,840 in
the prior week.             
    Canadian government bond prices were higher across the yield
curve in sympathy with U.S. Treasuries. The two-year           
rose 5.5 Canadian cents to yield 1.403% and the 10-year
            was up 34 Canadian cents to yield 1.448%.
    Canada's wholesale trade report for April is due on Tuesday
and April gross domestic product data is due on Friday.

 (Reporting by Fergal Smith; Editing by Steve Orlofsky)
  
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