January 14, 2020 / 2:27 PM / in 4 months

CANADA FX DEBT-Canadian dollar dips against greenback ahead of trade pact

    * Canadian dollar dips 0.1% against the greenback
    * Loonie trades in a range of 1.3051 to 1.3080
    * Price of U.S. oil increases nearly 1%
    * Canadian bond prices rise across a flatter yield curve

    TORONTO, Jan 14 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Tuesday as the greenback broadly
climbed, but the loonie stuck within its recent trading range
ahead of the expected signing this week of a trade deal between
the United States and China.
    At 8:51 a.m. (1351 GMT), the Canadian dollar          was
trading 0.1% lower at 1.3071 to the U.S. unit, or 76.51 U.S.
cents. The currency, which last Thursday hit a near two-week low
at 1.3104, traded in a range of 1.3051 to 1.3080.
    A Chinese delegation arrived in Washington ahead of
Wednesday's scheduled signing of a Phase 1 trade agreement, seen
as likely calming a dispute that has upended the world economy.
            
    Canada is a major producer of commodities, including oil, so
its economy could benefit from an improved outlook for global
trade.
    U.S. crude oil futures        rose nearly 1% to $58.64 a
barrel, snapping four straight days of declines on easing
Mideast tensions, while the U.S. dollar gained ground against a
basket of major currencies.             
    On Monday, a quarterly business survey from the Bank of
Canada showed that sentiment was "broadly positive," cementing
expectations for the Bank of Canada to leave its benchmark
interest rate on hold next week at 1.75%.             
    The central bank has stayed on the sidelines since October
2018 even as some other major central banks, such as the Federal
Reserve and the European Central Bank, have eased. The Bank of
Canada's stance has helped support the loonie, which was the
top-performing G10 currency in 2019 with a gain of 5%.
    Canadian government bond prices were higher across a flatter
yield curve on Tuesday in sympathy with U.S. Treasuries as U.S.
data showed that consumer prices rose moderately in December.
    The two-year            rose 1.5 Canadian cents to yield
1.661% and the 10-year             was up 14 Canadian cents to
yield 1.595%.

 (Reporting by Fergal Smith; Editing by Bernadette Baum)
  
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