November 15, 2019 / 2:11 PM / 23 days ago

CANADA FX DEBT-Canadian dollar steadies as U.S.-China trade deal hopes climb

    * Loonie is on track to fall 0.1% this week
    * Foreign investors buy Canadian securities in September
    * Price of U.S. oil increases 0.3%
    * Canadian bond prices fall across the yield curve

    TORONTO, Nov 15 (Reuters) - The Canadian dollar was nearly
unchanged against its U.S. counterpart on Friday, steadying
after it hit a one-month low the day before as investors grew
more hopeful of a U.S.-China trade deal.
    Global stocks rose          after White House economic
adviser Larry Kudlow said on Thursday that the United States and
China were nearing a deal and talking every day.             
    The Bank of Canada last month expressed concern about global
trade uncertainty as it cut its economic growth forecasts and
left its benchmark interest rate unchanged at 1.75%.
    On Thursday, Bank of Canada Governor Stephen Poloz said that
policymakers should also pay attention to longer-term structural
forces, such as the widespread adoption of artificial
intelligence, machine learning and other new technologies that
could be boosting potential output in ways that could take years
to show up in the data.             
    At 8:39 a.m. (1339 GMT), the Canadian dollar          was
trading nearly unchanged at 1.3244 to the greenback, or 75.51
U.S. cents. The currency, which hit on Thursday a one-month low
at 1.3270, traded in a range of 1.3219 to 1.3252.
    For the week, the loonie was on track to decline 0.1%.
    Steadying of the loonie on Friday came as the price of oil,
one of Canada's major exports, rose and data showed that foreign
investors were buyers of Canadian securities in September.
    U.S. crude        prices were up 0.3% at $56.92 a barrel,
supported by hopes that producer group OPEC and its associates
will keep a lid on supply when they meet to discuss output
policy next month.             
    Foreign investors bought a net C$4.76 billion in Canadian
securities in September, led by corporate bonds, Statistics
Canada said.             
    Canadian government bond prices were lower across the yield
curve in sympathy with U.S. Treasuries as data showed that U.S.
retail sales rebounded in October.             
    The two-year            fell 4.5 Canadian cents to yield
1.545% and the 10-year             was down 21 Canadian cents to
yield 1.487%. On Thursday, the 10-year yield touched its lowest
since Nov. 4 at 1.464%.

 (Reporting by Fergal Smith
Editing by Nick Zieminski)
  
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