June 27, 2019 / 2:12 PM / 3 months ago

CANADA FX DEBT-Canadian dollar holds near five-month high ahead of G20 summit

    * Canadian dollar rises 0.1% against the greenback
    * Loonie is on track to gain 3.1% in June
    * Price of U.S. oil trades near flat
    * Canadian bond prices gain across the yield curve

    TORONTO, June 27 (Reuters) - The Canadian dollar
strengthened slightly against its U.S. counterpart on Thursday,
approaching a near five-month high posted the day before, as
investors weighed the prospect of progress in a trade dispute
between the United States and China.
    Global stocks          rose following a report that the U.S.
and China have agreed to a tentative truce in their trade
dispute before a G20 summit this weekend.             
    Canada is a major exporter of commodities, including oil, so
its economy could benefit from reduced uncertainty for global
trade.
    U.S. crude oil        prices were little changed at $59.37 a
barrel, constrained by perceptions that supply is ample despite
prospects for continued OPEC curbs.               
    At 9:37 a.m. (1337 GMT), the Canadian dollar          was
trading 0.1% higher at 1.3113 to the greenback, or 76.26 U.S.
cents. The currency, which on Wednesday touched its strongest
since Feb. 5 at 1.3108, traded in a narrow range of 1.3111 to
1.3138.
    The loonie is on track to gain 3.1% in June, while it has
gained more than 4% since the start of the year, the best
performance among G10 currencies.
    The modest gain on Thursday for the loonie came as data from
Statistics Canada showed that average weekly earnings of
non-farm payroll employees rose by 2.9% in April, the fastest
pace since August last year, and that non-farm payroll employees
rose by 17,000 for the same month from March. 
    Canadian gross domestic product data for April is due on
Friday and could help guide expectations for interest rate
decisions by the Bank of Canada over the coming months.
    Canadian government bond prices were higher across the yield
curve in sympathy with U.S. Treasuries. The two-year           
rose 3.5 Canadian cents to yield 1.444% and the 10-year
            was up 21 Canadian cents to yield 1.480%.
    Earlier in the session, the 10-year yield touched its
highest since June 12 at 1.522%.     

 (Reporting by Fergal Smith; Editing by Cynthia Osterman)
  
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