July 17, 2020 / 2:34 PM / 21 days ago

CANADA FX DEBT-C$ slightly up vs broadly weak U.S. dollar

    * Canadian dollar up 0.1% vs U.S. dollar 
    * Bond yields up across maturity curve

    By Gertrude Chavez-Dreyfuss
    NEW YORK, July 17 (Reuters) - The Canadian dollar was
slightly higher against a broadly weaker U.S. dollar in choppy
trading on Friday, in line with gains in other commodity
currencies, as risk appetite improved with shares on Wall Street
posting gains.
    Earlier in the session, the commodity currencies traded
modestly lower on the day, as crude oil prices slipped in the
face of mounting uncertainty about the recovery in energy demand
as new coronavirus cases surged.
    In the mid-morning session, the Canadian dollar was up 0.1%
at C$1.3569 per U.S. dollar         . On the week, however, the
Canadian dollar was up around 0.8%
    Oil prices though remained lower. Brent crude futures
        fell 0.9% to $42.97 a barrel, while U.S. West Texas
Intermediate (WTI) crude        was down 0.7% at $40.46 per
barrel.
    "Oil looks like it could break out, but it hasn't done that
just yet, so dollar/Canada looks like it's sitting between
support and resistance," said Erik Bregar, head of FX strategy
at Exchange Bank of Canada in Toronto.
    "If we get some kind of catalyst that moves August crude oil
prices decisively above $41 per barrel, that could be the next
positive catalyst for the Canadian dollar to push it below $1.35
versus the U.S. dollar," he added.
    In the bond market, Canadian government debt yields rose
across the curve, with the two-year            yield up at 0.28%
from 0.265% late on Thursday. 
    The benchmark Canadian 10-year yield rose to 0.516%
            from Thursday's 0.504%.

 (Reporting by Gertrude Chavez-Dreyfuss
Editing by Alistair Bell)
  
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