November 4, 2019 / 10:20 PM / a month ago

CANADA FX DEBT-C$ steadies ahead of domestic trade and jobs data this week

 (Adds dealer quotes and details throughout; updates prices)
    * Canadian dollar trades near flat against the greenback
    * U.S. crude oil futures rise 0.6%
    * Canadian bond prices fall across a steeper yield curve

    By Fergal Smith
    TORONTO, Nov 4 (Reuters) - The Canadian dollar was little
changed against its U.S. counterpart on Monday, keeping to a
narrow trading range as investors took stock of the Bank of
Canada's more dovish tone and influential domestic data loomed
in the coming days.
    Canada's central bank left its benchmark interest rate
unchanged at 1.75% last week, but cut its global and domestic
growth forecasts as it worried that Canada's economy would be
"increasingly tested" by trade uncertainty.             
    The loonie notched a three-month high at 1.3043 before the
rate decision but has since declined as much as 1.3%.
    "The fact that (Bank of Canada Governor) Stephen Poloz is
concerned about the worsening global situation, it has put the
(USD-CAD) downtrend to a bit of a halt," said Erik Bregar, head
of FX strategy at the Exchange Bank of Canada. "But I don't
think it's completely over yet until the market gets back above
1.32."
    Canada's trade report for September is due on Tuesday and
the October jobs report is due on Friday, both of which can help
guide expectations for the central bank's policy outlook.
    At 4:32 p.m. (2132 GMT), the Canadian dollar          was
trading nearly unchanged at 1.3148 to the greenback, or 76.06
U.S. cents. The currency, which fell 0.6% last week, traded in a
narrow range of 1.3130 to 1.3160.
    The steady profile for the loonie came as the U.S. dollar
       rallied against a basket of major currencies and as
optimism the United States and China would reach a trade deal
helped push shares on Wall Street        to a record high.
            
    Canada is a major exporter of commodities, so its economy
could benefit from an improved outlook for global trade.
    U.S. crude oil futures        settled 0.6% higher at $56.54
a barrel, boosted by flagging OPEC discussions of a deeper
output cut next month as well as growing expectations of a
U.S.-China trade deal.             
    Canadian government bond prices were lower across a steeper
yield curve in sympathy with U.S. Treasuries. The two-year
           fell 8.5 Canadian cents to yield 1.597% and the
10-year             was down 76 Canadian cents to yield 1.526%.

 (Reporting by Fergal Smith; Editing by Franklin Paul and Peter
Cooney)
  
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