June 25, 2019 / 1:23 PM / 5 months ago

CANADA FX DEBT-C$ nears 3-month high after wholesale trade crushes estimates

    * Canadian dollar rises 0.1% against the greenback
    * Canadian wholesale trade rises 1.7% in April
    * Price of U.S. oil increases 0.1%
    * Canadian bond prices were little changed across the yield
curve

    TORONTO, June 25 (Reuters) - The Canadian dollar
strengthened against its U.S. counterpart on Tuesday,
approaching last week's three-month high, as domestic data
showed a much stronger-than-expected rise for wholesale trade in
April.
    Canadian wholesale trade increased by 1.7% in April from
March on stronger sales in the motor vehicle and motor vehicle
parts and accessories subsector, Statistics Canada said.
Analysts had forecast a 0.2% increase.             
    The stronger-than-expected gain could boost prospects for
April gross domestic product data, which is due for release on
Friday.
    It also could support the view that the Bank of Canada will
hold off from cutting interest rates in the coming months. Money
markets see about a 50% chance of a rate cut by December, which
is much less easing than expected from the U.S. Federal Reserve.
          
    Investors will closely monitor a speech later in the day by
Fed Chair Jerome Powell.
    At 8:58 a.m. EST (1258 GMT), the Canadian dollar         
was trading 0.1% higher at 1.3159 to the greenback, or 75.99
U.S. cents. The currency, which on Thursday touched its
strongest intraday level since March 1 at 1.3151, traded in a
range of 1.3158 to 1.3196.
    Gains for the loonie came as the price of oil, one of
Canada's major exports, was supported by risks to supply linked
to tensions around Iran. U.S. crude oil futures        rose 0.1%
to $57.97.                 
    Canadian government bond prices were little changed across
the yield curve, with the two-year            down 0.5 Canadian
cent to yield 1.408% and the 10-year             falling 1
Canadian cent to yield 1.462%.

 (Reporting by Fergal Smith
Editing by Bill Trott)
  
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