October 4, 2018 / 1:55 PM / in 19 days

CANADA FX DEBT-C$ claws back its losses after hitting lowest since Monday

    * Canadian dollar trades near flat to the greenback
    * Loonie touches its weakest since Monday at 1.2888
    * Bond prices trade mixed across a steeper yield curve
    * 10-year yield nears a five-year high at 2.584 percent

    TORONTO, Oct 4 (Reuters) - The Canadian dollar was little
changed against its U.S. counterpart on Thursday after clawing
back its earlier losses, as higher U.S. Treasury yields weighed
on global stocks and supported recent gains for the greenback.
    At 9:34 a.m. (1334 GMT), the Canadian dollar          was
trading nearly unchanged at 1.2870 to the greenback, or 77.70
U.S. cents. The currency touched its weakest intraday level
since Monday at 1.2888.
    On Monday, the loonie notched a more-than four-month high at
1.2783, boosted by a last-minute deal to revamp the North
American Free Trade Agreement (NAFTA).
    The Canadian dollar will rally over the coming year,
according to currency strategists in a Reuters poll who raised
their forecasts for the currency as the deal to salvage NAFTA
reduced economic uncertainty.                 
    The U.S. dollar        held near a six-week high as rising
Treasury yields prompted investors to buy the greenback before
monthly jobs data on Friday which may show the U.S. economy
growing at a robust pace.             
    Canada's monthly jobs data is also due on Friday as well as
trade data.
    Robust economic data and optimistic views from the Federal
Reserve have pushed government bond yields to multiyear highs,
while curbing the appetite for stocks globally.             
    The price of oil, one of Canada's major exports, pulled back
from near four-year highs as the imminent loss of Iranian supply
through U.S. sanctions was offset by the prospect of a rapid
production boost from Saudi Arabia and Russia.             
    U.S. crude        prices were down 0.7 percent at $75.86 a
barrel.
    Small Canadian oil producers are striking complex deals with
refineries, diversifying production and seeking marketing help
as they try to soften the blow from record price discounts on
heavy crude generated by pipeline congestion.                 
    Canadian government bond prices were mixed across a steeper
yield curve, with the two-year            up 1.5 Canadian cents
to yield 2.307 percent and the 10-year             falling 2
Canadian cents to yield 2.554 percent.
    The 10-year yield touched its highest since January 2014 at
2.584 percent.   

 (Reporting by Fergal Smith; editing by Jonathan Oatis)
  
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