November 8, 2016 / 2:42 PM / 9 months ago

CANADA FX DEBT-C$ edges higher as investors ready for U.S. election outcome

* Canadian dollar at C$1.3366, or 74.82 U.S. cents
    * Bond prices lower across the yield curve

    TORONTO, Nov 8 (Reuters) - The Canadian dollar strengthened
against its U.S. counterpart on Tuesday but traded in a tight
range as investors readied for the outcome of the U.S.
presidential election.
    Cautious expectations of a win for Democrat Hillary Clinton
have helped support the loonie at the start of the week after it
touched its weakest level since March at C$1.3466 on Friday. A
victory for Clinton is seen as less of a threat to Canada's
trade-intensive economy.
    U.S. Republican presidential candidate Donald Trump, who has
gained on Clinton in recent opinion polls, has said he would
renegotiate or scrap the North American Free Trade Agreement if
elected.
    At 9:16 a.m. EST (1416 GMT), the Canadian dollar 
traded at C$1.3366 to the greenback, or 74.82 U.S. cents,
slightly stronger than Monday's close of C$1.3372, or 74.78 U.S.
cents.
    The currency's strongest level of the session was C$1.3351,
while its weakest was C$1.3391.
    Modest gains for the loonie came despite lower oil prices.
U.S. crude prices were down 0.85 percent at $44.51 a
barrel, pressured by a retreat in U.S. stock index futures and a
firmer U.S. dollar. 
    Canadian housing starts slowed in October as condo
construction pulled back after a surge in September, data from
the national housing agency showed. 
    In other domestic data, the value of building permits fell
by 7 percent in September from August, making for the biggest
drop in eight months, data from Statistics Canada showed.
 
    Canadian government bond prices were lower across the yield
curve, with the two-year down 2 Canadian cents to
yield 0.564 percent and the benchmark 10-year 
falling 9 Canadian cents to yield 1.229 percent.
    Bank of Canada Deputy Governor Lawrence Schembri will give a
speech in Halifax on the prospects for Canadian exports. The
central bank recently acknowledged that some of the weakness in
exports is likely structural. Investors will watch the speech
for any further updates on the bank's outlook for the sector,
which is seen as being key for Canada's growth.
    The central bank will release Schembri's prepared remarks at
11:05 a.m. EST (1605 GMT).

 (Reporting by Fergal Smith; Editing by Jeffrey Benkoe)

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