June 26, 2019 / 1:50 PM / a year ago

CANADA FX DEBT-C$ climbs to 4-month high amid trade deal optimism

    * Canadian dollar rises 0.1% against the greenback
    * Loonie touches its strongest since March 1 at 1.3142
    * Price of U.S. oil increases 2.7%
    * Canadian bond prices fall across the yield curve

    TORONTO, June 26 (Reuters) - The Canadian dollar
strengthened to a near four-month high against its U.S.
counterpart on Wednesday as oil prices rose and investors became
more optimistic that the United States and China would strike a
trade deal.
    U.S. stocks rose after comments by Treasury Secretary Steven
Mnuchin fueled optimism that the United States and China would
strike a trade deal.             
    Canada has its own trade issues with China. Still, it is a
major exporter of commodities, including oil, so its economy
could benefit from reduced uncertainty for global trade.
    The price of oil was buoyed by an outage at a major refinery
on the U.S. East Coast and industry data that showed U.S. crude
stockpiles fell more than expected. U.S. crude oil futures
       were up 2.7% at $59.40 a barrel             
    At 9:40 a.m. (1340 GMT), the Canadian dollar          was
trading 0.1% higher at 1.3154 to the greenback, or 76.02 U.S.
cents. The currency touched its strongest intraday level since
March 1 at 1.3142.
    The loonie rose even as China said it wants the Canadian
government to stop allowing meat shipments to China after bogus
export certificates were discovered.                 
    Canadian government bond prices were lower across the yield
curve in sympathy with U.S. Treasuries, with the two-year
           down 3 Canadian cents to yield 1.419% and the 10-year
            falling 21 Canadian cents to yield 1.457%.
    Canadian gross domestic product data for April is due for
release on Friday.

 (Reporting by Fergal Smith
Editing by Nick Zieminski)
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