May 30, 2019 / 1:38 PM / 4 months ago

CANADA FX DEBT-C$ up before central bank official's speech as stock markets steady

    * Canadian dollar rises 0.2% against the greenback
    * Price of U.S. oil increases 0.5%
    * Canadian bond prices mixed across flatter yield curve

    TORONTO, May 30 (Reuters) - The Canadian dollar gained
against the greenback on Thursday, recovering from a near
five-month low a day earlier, as trade-related pressure eased on
financial markets and ahead of a speech by a senior Bank of
Canada official.
    At 9:14 a.m. (1314 GMT), the Canadian dollar          was
trading 0.2% higher at 1.3490 to the greenback, or 74.13 U.S.
cents. The currency, which hit on Wednesday its weakest since
Jan. 3 at 1.3547, traded in a range of 1.3487 to 1.3521.
    Global stocks steadied after hitting the lowest levels in
more than two months on Wednesday, when investors worried that a
drawn-out trade dispute between the United States and China
could weigh on global growth.             
    Canada runs a current account deficit and exports many
commodities, including oil, so its economy could be hurt by a
slowdown in the global flow of trade or capital.
    Canada's current account deficit widened to C$17.35 billion
in the first quarter from a revised C$16.62 billion deficit in
the fourth quarter, on a higher deficit on trade goods and
services, Statistics Canada said.             
    The price of oil was supported by a tightening crude market
and rising political tensions in the Middle East. U.S. crude oil
futures        were up 0.5% at $59.08 a barrel.             
    Bank of Canada Senior Deputy Governor Carolyn Wilkins is due
to speak about the economy. The central bank will release her
prepared remarks at 2:15 p.m. (1815 GMT).
    On Wednesday, the Bank of Canada said there was increasing
evidence that the economic slowdown was temporary as it left its
benchmark interest rate unchanged at 1.75%.             
    U.S. Vice President Mike Pence and Canadian Prime Minister
Justin Trudeau will discuss their countries' joint dispute with
China over Huawei during a meeting in Ottawa on Thursday, a
senior U.S. administration official said.             
    Canadian government bond prices were mixed across a flatter
yield curve, with the two-year            down 1 Canadian cent
to yield 1.536% and the 10-year             rising 8 Canadian
cents to yield 1.571%.
    The 10-year yield hit on Wednesday its lowest since March 28
at 1.524%.        

 (Reporting by Fergal Smith; Editing by Bernadette Baum)
  
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