December 10, 2019 / 2:20 PM / in 7 months

CANADA FX DEBT-C$ firms as investors weigh potential U.S.-China tariffs delay

    * Canadian dollar rises 0.1% against the greenback
    * Loonie trades in a range of 1.3225 to 1.3249
    * Price of U.S. oil decreases by 0.1%
    * Canadian bond prices were mixed across the yield curve

    TORONTO, Dec 10 (Reuters) - The Canadian dollar edged higher
against the greenback on Tuesday as Canada, the United States
and Mexico tried to finalize a North American trade pact and as
investors weighed prospects of additional U.S. tariffs on China
being delayed.
    Senior U.S. and Canadian officials were set to fly to Mexico
City on Tuesday to work on final changes to the U.S.-Mexico
Canada Agreement (USMCA) that could clear the way for a vote in
the U.S. Congress before the end of the year.             
    Canada sends about 75% of its exports to the United States,
including oil. Its commodity-linked economy could also benefit
from an improved outlook for global trade.
    U.S. stock index futures turned positive after a report that
trade negotiators from the United States and China were planning
to delay a fresh round of tariffs set to kick in on Dec. 15.
            
    U.S. crude oil futures        were down 0.1% at $58.96 a
barrel after clawing back some earlier losses.             
    At 9:02 a.m. (1402 GMT), the Canadian dollar          was
trading 0.1% higher at 1.3233 to the greenback, or 75.57 U.S.
cents. The currency traded in a range of 1.3225 to 1.3249.
    Bank of Canada Governor Stephen Poloz, who will step down
when his seven-year mandate expires in June             , is due
to speak on Thursday.
    Last week, the central bank left its benchmark interest rate
on hold at 1.75% as it pointed to early signs the global economy
was stabilizing and sources of resilience in the Canadian
economy.             
    But domestic data has since showed that Canada's economy
shed more than 70,000 jobs in November.             
    Canadian government bond prices were mixed across the yield
curve, with the two-year            flat to yield 1.666% and the
benchmark 10-year             falling 8 Canadian cents to yield
1.593%.

 (Reporting by Fergal Smith; Editing by Steve Orlofsky)
  
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