June 27, 2018 / 2:05 PM / 6 months ago

CANADA FX DEBT-C$ firms as investors eye Poloz for clues on rate outlook

    * Canadian dollar at C$1.3296, or 75.21 U.S. cents
    * Price of U.S. oil rises 1.8 percent
    * Bank of Canada's Poloz due to speak at 3:00 p.m. EDT (1900
GMT)
    * Bond prices rise across the yield curve

    TORONTO, June 27 (Reuters) - The Canadian dollar edged
higher against its U.S. counterpart on Wednesday ahead of a
speech by Bank of Canada Governor Stephen Poloz that could offer
hints as to whether the central bank will raise interest rates
next month.
    At 9:45 a.m. EDT (1345 GMT), the Canadian dollar         
was trading 0.1 percent higher at C$1.3296 to the greenback, or
75.21 U.S. cents. The currency traded in a range of C$1.3283 to
C$1.3327.
    The Bank of Canada, which has worried about an uncertain
trade outlook, will release Poloz's prepared remarks at 3:00
p.m. EDT (1900 GMT).
    Chances of a rate hike at the July 11 announcement have
slipped to 55 percent from about 70 percent prior to domestic
data on Friday showing weaker-than-expected retail sales and
inflation.
    The price of oil, one of Canada's major exports, was
supported by U.S. demands that importers stop buying Iranian
crude from November. U.S. crude        prices were up 1.8
percent at $71.79 a barrel.             
    Some of the benefit of higher prices, however, could be lost
for Canada due to a supply outage at the Syncrude oil sands
facility in Alberta, with repairs expected to last at least
through July.             
    U.S. stocks rose after the Trump administration said it
would use a strengthened security review process to deal with
threats from Chinese investments in domestic technologies,
instead of imposing China-specific restrictions.             
    Canada runs a current account deficit so its economy could
be hurt if the flow of trade or capital slows.
    The country also has its own trade dispute with the United
States and is in slow-moving talks to revamp the North American
Free Trade Agreement.
    Canadian government bond prices were higher across the yield
curve in sympathy with U.S. Treasuries. The 5-year bond rose
10.5 Canadian cents to yield 1.950 percent.             

 (Reporting by Fergal Smith; Editing by Dan Grebler)
  
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