February 13, 2019 / 3:36 PM / in 8 months

CANADA FX DEBT-C$ notches one-week high as investors bet on trade deal

    * Canadian dollar rises 0.1 percent against the greenback
    * Loonie touches its strongest since Feb. 6 at 1.3197
    * Price of U.S. oil climbs 2 percent
    * Canadian home prices fall for fourth straight month in
January
    * Canadian bond prices decline across the yield curve

    TORONTO, Feb 13 (Reuters) - The Canadian dollar rose to its
highest in one week against its broadly stronger U.S.
counterpart on Wednesday, as oil prices climbed and investors
bet that the United States and China would resolve their trade
dispute.
    U.S. stocks added to this week's gains, buoyed by hopes that
the ongoing U.S.-China trade talks could result in an agreement.
            
    A trade deal could boost prospects for Canada's economy as a
major producer of commodities, including oil.
    U.S. crude        prices were up 2 percent at $54.18 a
barrel, supported by a decline in U.S. oil inventories and after
top exporter Saudi Arabia said it would cut crude exports and
deliver an even deeper cut to its production.             
    The U.S. dollar        rose against a basket of other major
currencies after U.S. data for January that showed steady 2.2
percent core inflation, a measure that excludes frequently
volatile energy and food prices.             
    At 10:16 a.m. (1516 GMT), the Canadian dollar          was
trading 0.1 percent higher at 1.3222 to the greenback, or 75.63
U.S. cents. The currency touched its strongest since Feb. 6 at
1.3197.
    Canadian home prices fell 0.1 percent in January, the fourth
consecutive month of decline, led by weakness in major Western
Canadian cities, the Teranet-National Bank Composite House Price
Index showed.
    Canadian government bond prices were lower across the yield
curve in sympathy with U.S. Treasuries. The two-year           
fell 4.5 Canadian cents to yield 1.822 percent and the 10-year
            declined 21 Canadian cents to yield 1.943 percent.

 (Reporting by Fergal Smith)
  
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