June 22, 2020 / 1:41 PM / 18 days ago

CANADA FX DEBT-Canadian dollar gains ground ahead of new BoC governor's speech

    * Canadian dollar rises 0.3% against the greenback
    * Loonie trades in a range of 1.3561 to 1.3630
    * Price of U.S. oil decreases 0.5%
    * Canadian bond yields trade mixed across a flatter curve

    TORONTO, June 22 (Reuters) - The Canadian dollar
strengthened against its U.S. counterpart on Monday as investors
bet that economic recovery would not be derailed by rising
coronavirus infections and ahead of a speech by new Bank of
Canada Governor Tiff Macklem.
    World stocks clawed back earlier losses and the U.S. dollar
       slid as equity investors shrugged off worries that rising
coronavirus infections in parts of Europe and the United States
over the weekend could scupper a quick economic rebound.
            
     Investors, looking past the COVID-19 pandemic, are betting
that the Bank of Canada could be among the first major central
banks to hike interest rates, signaling new governor Tiff
Macklem's success so far convincing the market not to expect
negative rates.             
    Macklem is due to speak this morning at 11 a.m. (1500 GMT)
on monetary policy in the context of COVID-19, his first speech
as the new governor. A press conference will follow.
    The Canadian dollar        was trading 0.3% higher at 1.3562
to the greenback, or 73.74 U.S. cents. The currency, which
dipped 0.1% last week, traded in a range of 1.3561 to 1.3630.
    Speculators have raised their bearish bets on the Canadian
dollar for the first time in four weeks, data from the U.S.
Commodity Futures Trading Commission showed on Friday. As of
June 16, net short positions had increased to 25,486 contracts
from 24,829 in the prior week.
    The price of oil, one of Canada's major exports, fell on
Monday as concern grew that a record rise in global coronavirus
infections could stall recovery in fuel demand. U.S. crude
       prices were down 0.5% to $39.54 a barrel.             
    Canadian government bond yields were mixed across a flatter
curve, with the 10-year             down 2.2 basis points at
0.512%.

 (Reporting by Fergal Smith
Editing by Nick Zieminski)
  
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