January 30, 2017 / 3:11 PM / in 8 months

CANADA FX DEBT-C$ little changed as investors assess Trump travel curbs

* Canadian dollar at C$1.3136, or 76.13 U.S. cents
    * Loonie touches a nearly one-week low at C$1.3168
    * Bond prices mixed across the yield curve

    TORONTO, Jan 30 (Reuters) - The Canadian dollar was little
changed against its U.S. counterpart on Monday, recovering from
an earlier nearly one-week low, as oil prices fell and investors
weighed concerns over a travel ban implemented by U.S. President
Donald Trump.
    The U.S. dollar rose against a basket of major
currencies as weaker-than-expected German inflation data
pressured the euro and data showed U.S. consumer spending rose
solidly in December.  
    Concerns about a U.S. order banning the entry of people from
seven Muslim-majority countries had weighed on the greenback
earlier in the session.
    Canada said it would offer temporary residency to any
travelers stranded by the U.S. ban. 
    The loonie's steady profile came even as oil, one of
Canada's major exports, fell. U.S. crude prices were down
0.87 percent at $52.71 a barrel after another increase in U.S.
drilling activity spread concern over rising output. 
    At 10:02 a.m. ET (1502 GMT), the Canadian dollar 
was trading at C$1.3136 to the greenback, or 76.13 U.S. cents,
slightly stronger than Friday's close of C$1.3138, or 76.12 U.S.
cents.
    The currency's strongest level of the session was C$1.3116,
while it touched its weakest since Jan. 24 at C$1.3168.
    The loonie rose 1.3 percent last week as investor fears of a
more unfavorable trade outlook for Canada abated and after Trump
signed orders smoothing the path for the Keystone XL oil
pipeline.
    Speculators turned bullish on the Canadian dollar for the
first time since September, data from the Commodity Futures
Trading Commission and Reuters calculations showed on Friday.
Canadian dollar positions swung to net long 2,519 contracts as
of Jan. 24 from net short 5,456 contracts a week earlier.
    
    Canadian government bond prices were mixed across the yield
curve, with the two-year up 0.5 Canadian cent to
yield 0.803 percent and the 10-year falling 6
Canadian cents to yield 1.784 percent.
    Six people were killed and eight wounded when gunmen opened
fire at a Quebec City mosque during Sunday night prayers, in
what Canadian Prime Minister Justin Trudeau called a "terrorist
attack on Muslims." 
    On Tuesday, Canada's gross domestic product data for
November is due to be released and Bank of Canada Governor
Stephen Poloz will give a speech on economic modeling and
monetary policy.
    Earlier this month, Poloz said a rate cut remained "on the
table" if the risks facing the country are realized, warning
there would be "material consequences" if Trump enacts
protectionist policies.

 (Reporting by Fergal Smith; Editing by Bernadette Baum)

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