November 1, 2018 / 2:18 PM / a year ago

CANADA FX DEBT-C$ rebounds as risk appetite rises at start of November

    * Canadian dollar rises 0.6 percent against the greenback
    * Canada manufacturing growth slows to 21-month low in
    * Price of U.S. oil falls 0.3 percent
    * Bond prices trade lower across the yield curve

    TORONTO, Nov 1 (Reuters) - The Canadian dollar strengthened
against its U.S. counterpart on Thursday, rebounding from a
seven-week low the day before, as investors began the new month
with more appetite for risk and the greenback broadly declined.
    Analysts said a flood of end-of-month buying of U.S. dollars
on Wednesday had ceased with the start of November.             
    After a brutal October for stocks, risk sentiment globally
was boosted by a string of robust earnings reports and Chinese
stimulus plans.             
    Canada runs a current account deficit and exports many
commodities, so its economy could benefit from improved
prospects for the flow of trade or capital.    
    The loonie will rally over coming months on a recovery in
demand for riskier assets and as a solid domestic economy
supports more interest rate hikes from a hawkish central bank,
according to a Reuters poll.             
    On Wednesday, Bank of Canada Governor Stephen Poloz repeated
his message that interest rates would need to keep rising to
meet the central bank's inflation target.                
    At 9:57 a.m. (1357 GMT), the Canadian dollar          was
trading 0.6 percent higher at 1.3081 to the greenback, or 76.45
U.S. cents. The currency, which touched its weakest in more than
seven weeks on Wednesday at 1.3170, traded in a range of 1.3071
to 1.3167.
    The price of oil, one of Canada's major exports, was on
course for its fourth consecutive week of decline, pressured by
rising crude supply. U.S. crude        prices were down 0.3
percent at $65.11 a barrel.             
    The IHS Markit Canada Manufacturing Purchasing Managers'
index (PMI), a measure of manufacturing business conditions,
fell to a seasonally adjusted 53.9 last month, its lowest since
January 2017, from 54.8 in September.             
    Canada's jobs data for October and September trade data are
due on Friday.
    Canadian government bond prices were lower across the yield
curve, with the two-year            down 0.5 Canadian cent to
yield 2.341 percent and the 10-year             falling 10
Canadian cents to yield 2.506 percent.

 (Reporting by Fergal Smith, Editing by Rosalba O'Brien)
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