November 13, 2019 / 9:13 PM / 22 days ago

CANADA FX DEBT-Canadian dollar hits 1-month low, pares decline ahead of Poloz speech

 (Adds strategist quotes and details throughout; updates prices)
    * Canadian dollar falls 0.1% against the greenback
    * Loonie hits its weakest since Oct. 11 at 1.3268
    * Price of U.S. oil increases 0.6%
    * Canadian bond prices rise across a flatter yield curve

    By Fergal Smith
    TORONTO, Nov 13 (Reuters) - The Canadian dollar weakened to
a one-month low against its U.S. counterpart on Wednesday, but
the currency's decline lost some momentum as investors turned
attention to a speech by Bank of Canada Governor Stephen Poloz
on Thursday.
    At 3:40 p.m. (2040 GMT), the Canadian dollar          was
trading 0.1% lower at 1.3251 to the greenback, or 75.47 U.S.
cents. The currency's strongest level of the session was 1.3230,
while it touched its weakest since Oct. 11 at 1.3268.
    The loonie has declined by as much as 1.5% since Oct. 30,
when the Bank of Canada shifted to a more dovish stance by
cutting its economic growth forecasts and expressing concern
about global trade uncertainty.                     
    "That fundamental is fully priced in, so if what we get out
of Poloz and his speech from San Francisco is no change in the
tone from what we have already seen, then I don't think it will
have much play, said Greg Anderson, global head of foreign
exchange strategy at BMO Capital Markets in New York.
    "It might keep us on a 1.32 handle in dollar-CAD but I don't
think it is going to push us to new thresholds. That would be
much more data-dependent than anything," Anderson said.
    Poloz is due to speak on the fourth industrial revolution at
the Federal Reserve Bank of San Francisco on Thursday evening.
Money markets see chances of an interest rate cut from Canada's
central bank next month at less than 25%.           
    U.S. stocks seesawed as fresh uncertainty over relations
between the United States and China offset upbeat comments by
Federal Reserve Chairman Jerome Powell about the U.S. economy.
             
    Canada is a major exporter of commodities, including oil, so
its economy could be hurt by a more uncertain outlook for global
trade.
    U.S. crude oil futures        settled 0.6% higher after the
Organization of the Petroleum Exporting Countries said it saw no
signs of global recession and rival U.S. shale oil production
could grow by much less than expected in 2020.                 
    Canadian government bond prices were higher across a flatter
yield curve, outperforming U.S. Treasuries after data showed
U.S. consumer prices rebounded more than expected in October.
    The two-year            rose 6 Canadian cents to yield
1.572% and the 10-year             was up 56 Canadian cents to
yield 1.550%. The 10-year yield hit its lowest intraday level
since Nov. 4 at 1.530%.

 (Reporting by Fergal Smith; Editing by Nick Zieminski and Peter
Cooney)
  
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