September 11, 2019 / 1:36 PM / 2 months ago

CANADA FX DEBT-Loonie holds near 6-week high amid upbeat economic data

    * Canadian dollar trades in a range of 1.3140 to 1.3160
    * Canadian industrial capacity usage rose to 83.3% in Q2
    * Price of U.S. oil increases 0.4%
    * Canada's 10-year yield touches a near six-week high at
1.442%   
  

    TORONTO, Sept 11 (Reuters) - The Canadian dollar was little
changed against its U.S. counterpart on Wednesday, holding near
a six-week high it notched the day before, as oil prices rose
and domestic data showed higher than expected industrial
capacity usage.
    Canadian industries ran at 83.3% of capacity in the second
quarter of 2019, up from an upwardly revised 81.1% in the first
quarter, Statistics Canada said. Economists had forecast a rate
of 81.8%.             
    The jump in capacity usage adds to the recent batch of
upbeat economic reports. Last week, the Bank of Canada held its
benchmark interest rate unchanged at 1.75% and made no mention
of future rate cuts despite easing this year by many of its
global peers, including the U.S. Federal Reserve.             
    Meanwhile, the price of oil, one of Canada's major exports,
rose after a reported sharp drop in U.S. crude stocks and OPEC
member Iraq said the producer group would discuss deepening
output cuts amid ongoing demand concerns.             
    U.S. crude        oil futures were up 0.4% at $57.63 a
barrel.
    At 9:10 a.m. (1310 GMT), the Canadian dollar          was
trading nearly unchanged at 1.3156 to the greenback, or 76.01
U.S. cents. The currency, which posted on Tuesday its highest
intraday level since July 31 at 1.3134, traded in a range of
1.3140 to 1.3160.
    The narrow trading band for the loonie came as foreign
exchange traders awaited a key European Central Bank meeting on
Thursday, with the scale of an expected monetary easing package
from euro zone policymakers uncertain.             
    Canadian government bond prices were mixed across the yield
curve, with the two-year            up 2.5 Canadian cents to
yield 1.584% and the 10-year             falling 1 Canadian cent
to yield 1.429%.
    The 10-year yield touched its highest intraday level since
Aug. 1 at 1.442%.      

 (Reporting by Fergal Smith
Editing by Nick Zieminski)
  
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