February 12, 2019 / 9:10 PM / 5 months ago

CANADA FX DEBT-C$ gains as oil rallies, investors embrace risk

 (Adds strategist quotes and details on activity; updates
prices)
    * Canadian dollar rises 0.5 percent against greenback
    * Price of U.S. oil ends up 1.3 percent
    * Canadian bond prices fall across steeper yield curve

    By Fergal Smith
    TORONTO, Feb 12 (Reuters) - The Canadian dollar strengthened
against the greenback on Tuesday, adding to this year's gains as
oil prices climbed and as risk appetite was boosted by the
potential de-escalation of the trade dispute between the United
States and China.
    Wall Street rallied as investors were heartened by a
tentative congressional spending deal to avoid another U.S. 
government shutdown and after U.S. President Donald Trump said
he could let slide the March 1 deadline for a trade agreement
with China.             
    "It seems to be a risk-on move," said Bipan Rai, North
America head of FX Strategy at CIBC Capital Markets. "We are
seeing a lot of growth currencies benefit and the loonie is
being taken along for the ride."
    Canada is running a current account deficit and exports many
commodities, including oil, so its economy could benefit from a
pickup in the flow of trade or capital.
    U.S. crude oil futures        settled 1.3 percent higher,
boosted by steep OPEC production cuts after its de-facto leader,
Saudi Arabia, said it planned to drop March crude output by more
than a half a million barrels per day below its initial pledge.
    At 3:31 p.m. (2031 GMT), the Canadian dollar          was
trading 0.5 percent higher at 1.3236 to the greenback, or 75.55
U.S. cents. The currency traded in a range of 1.3233 to 1.3312.
    Gains for the loonie come after Canadian data on Friday
showed bumper jobs numbers in January that exceeded market
expectations and highlighted the strength of the economy.
            
    The loonie has advanced 3.1 percent since the start of 2019,
the best performance among G10 currencies.       
    Canadian government bond prices were lower across a steeper
yield curve in sympathy with U.S. Treasuries. The two-year
           fell 2 Canadian cents to yield 1.800 percent and the
10-year             declined 14.5 Canadian cents to yield 1.920
percent.

 (Reporting by Fergal Smith; Editing by Bernadette Baum and
Peter Cooney)
  
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below