September 17, 2018 / 2:08 PM / a month ago

CANADA FX DEBT-C$ firms as oil prices rise, greenback retreats

    * Canadian dollar at 1.3008 to greenback, or 76.88 U.S.
cents
    * Price of U.S. oil rises 0.7 percent
    * Bond prices lower across the yield curve

    TORONTO, Sept 17 (Reuters) - The Canadian dollar edged
higher against its U.S. counterpart on Monday, building on last
week's rally as the greenback broadly fell and oil prices
climbed.
    The price of oil, one of Canada's major exports, rose as
investors focused on the impact of U.S. sanctions on Iran
despite assurances by Washington that Saudi Arabia, Russia and
the United States could together raise output fast enough to
offset falling supplies.             
    U.S. crude        prices were up 0.7 percent at $69.48 a
barrel.
    The U.S. dollar        gave up early gains and fell while
emerging market currencies slipped nearly half a percent as
investors waited for the next salvo in the trade war between the
United States and China.             
    Canada runs a current account deficit, so its economy could
be hurt if the global flow of trade or capital slows.
    The country has its own trade feud with the United States
and is also in talks to revamp the North American Free Trade
Agreement.             
    At 9:51 a.m. EDT (1351 GMT), the Canadian dollar         
was trading 0.2 percent higher at 1.3008 to the greenback, or
76.88 U.S. cents.
    The currency, which rose nearly 1 percent last week, traded
in a range of 1.3008 to 1.3048.
    Foreign investors bought a net C$12.65 billion in Canadian
securities following a revised C$10.30 billion total purchase in
June, while Canadian investment in foreign securities also
climbed, data from Statistics Canada showed.             
    In separate data, resales of Canadian homes rose 0.9 percent
in August from July, notching the fourth straight monthly rise
but remaining below the highs seen in recent years, the Canadian
Real Estate Association said.                      
    Speculators have raised bearish bets on the Canadian dollar,
data from the U.S. Commodity Futures Trading Commission and
Reuters calculations showed. As of Sept. 11, net short positions
had increased to 26,942 contracts from 26,307 a week earlier.
            
    Canadian government bond prices were lower across the yield
curve, with the 10-year yield holding near its highest level in
more than five weeks. The 10-year             fell 10 Canadian
cents to yield 2.357 percent.
    Canada's inflation report for August and retail sales data
for July are due on Friday.

 (Reporting by Fergal Smith
Editing by Paul Simao)
  
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