September 24, 2019 / 8:17 PM / 23 days ago

CANADA FX DEBT-Loonie posts 1-week high as Trump impeachment risk hurts greenback

 (New throughout, updates prices and market activity, adds
strategist quotes and details)
    * Canadian dollar rises 0.2% against the greenback
    * Price of U.S. oil decreases 2.3%
    * Canada's 10-year yield hits a 2-week low at 1.304

    By Fergal Smith
    TORONTO, Sept 24 (Reuters) - The Canadian dollar
strengthened to its highest in more than one week against its
U.S. counterpart on Tuesday, as rising support among Democratic
lawmakers to pursue impeachment of U.S. President Donald Trump
weighed on the greenback.
    At 3:45 p.m. (1945 GMT), the Canadian dollar          was
trading 0.2% higher at 1.3238 to the greenback, or 75.54 U.S.
cents. The currency touched its strongest intraday level since
Sept. 16 at 1.3234.
    "CAD has strengthened moderately on the day and that is in
line with pretty much every other G10 currency," said Greg
Anderson, global head of foreign exchange strategy at BMO
Capital Markets in New York. "It appears that the biggest driver
on the day is U.S. political moves, with the market interpreting
rising likelihood of Trump impeachment as U.S. dollar negative."
    Adding to pressure on the U.S. dollar        was data
showing that U.S. consumer confidence fell in September, which
raised worries about the U.S. economy.             
    Meanwhile, the price of oil, one of Canada's major exports,
fell after Trump rekindled fears that the Sino-American trade
conflict, which has crimped energy demand, is far from over.
U.S. crude oil futures        settled 2.3% lower at $57.29 a
barrel.             
    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 about 30%
from more than 90% earlier this month, data from the overnight
index swaps market showed.           
    Canadian government bond prices were higher across a flatter
yield curve in sympathy with U.S. Treasuries. The two-year
           rose 8 Canadian cents to yield 1.522% and the 10-year
            was up 67 Canadian cents to yield 1.305%.
    The 10-year yield hit its lowest intraday level since Sept.
9 at 1.304%.

 (Reporting by Fergal Smith, Editing by William Maclean and
David Gregorio)
  
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below