September 24, 2019 / 2:10 PM / 20 days ago

CANADA FX DEBT-Canadian dollar firms as global trade optimism rises

    * Canadian dollar rises 0.1% against the greenback
    * Price of U.S. oil decreases 1.1%
    * Canadian bond prices gain across a flatter yield curve

    TORONTO, Sept 24 (Reuters) - The Canadian dollar edged
higher against its U.S. counterpart on Tuesday as investors grew
more optimistic on trade talks between the United States and
China.
    U.S. stocks rose as Washington confirmed that trade
negotiations with China would resume in two weeks, easing some
uncertainty caused by the cancellation of a planned U.S. farm
visit by Chinese delegates last week.             
    Canada is a major exporter of commodities, including oil, so
its economy could benefit from an improved outlook for global
trade.
    Oil prices fell as investors bet that Saudi Arabia could
restore oil output faster than anticipated following attacks
last week. U.S. crude oil futures        were down 1.1% at
$58.01 a barrel.             
    At 9:55 a.m. (1355 GMT), the Canadian dollar          was
trading 0.1% higher at 1.3253 to the greenback, or 75.45 U.S.
cents. The currency's weakest level was 1.3266, while it touched
its strongest since last Thursday at 1.3247.
    The gain for the loonie came after stronger-than-expected
wholesale trade data on Monday supported bets that the Bank of
Canada would leave interest rates unchanged this year.
    Chances of a rate cut by December have fallen to less than
30% from about 90% earlier this month, data from the overnight
index swaps market showed.           
    Canadian government bond prices were higher across a flatter
yield curve, with the two-year            price 1.5 Canadian
cents to yield 1.558% and the 10-year             rising 23
Canadian cents to yield 1.351%.
    On Monday, the 10-year yield hit its lowest intraday level
since Sept. 10 at 1.339%.  

 (Reporting by Fergal Smith, Editing by William Maclean)
  
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