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CANADA FX DEBT-C$ posts new 6-week high against weaker greenback
April 13, 2017 / 1:41 PM / 3 months ago

CANADA FX DEBT-C$ posts new 6-week high against weaker greenback

3 Min Read

    * Canadian dollar at C$1.3238, or 75.54 U.S. cents
    * Loonie touches its strongest since Feb. 28 at C$1.3224
    * Bond prices little changed across the yield curve
    * 10-year yield hits a nearly 5-month low intraday

    TORONTO, April 13 (Reuters) - The Canadian dollar
strengthened on Thursday to a fresh six-week high against its
U.S. counterpart as oil prices rose and domestic manufacturing
sales fell less-than-expected, while the greenback lost ground
against a basket of major currencies.
    The greenback fell after U.S. President Donald Trump said it
was getting too strong and that he would prefer the Federal
Reserve to keep interest rates low.             
    Prices of oil, one of Canada's major exports, rose after an
International Energy Agency report said the market was close to
balance.      
    U.S. crude        prices were up 0.30 percent at $53.27 a
barrel.
    Canadian manufacturing sales fell 0.2 percent in February
after three consecutive months of increases, weighed down by
declines in the vehicle assembly sector, data from Statistics
Canada showed.
    The decrease was not as steep as the 0.7 percent decline
economists had expected, while sales volumes rose 0.1 percent.
            
    "Canadian manufacturing is still on an upward trajectory,
and will contribute solidly to GDP growth" said Bill Adams,
senior international economist at The PNC Financial Services
Group in a research note.
    At 9:15 a.m. ET (1315 GMT), the Canadian dollar          was
trading at C$1.3238 to the greenback, or 75.54 U.S. cents,
stronger than the Bank of Canada's official close on Wednesday
of C$1.3273, or 75.34 U.S. cents.
    The currency's weakest level of the session was C$1.3255,
while it touched its strongest since Feb. 28 at C$1.3224.
    Gains for the loonie came one day after the Bank of Canada
turned less dovish, saying it did not even consider cutting
interest rates as it left monetary policy unchanged amid signs
of strong growth.             
    Canadian government bond prices were little changed across
the yield curve, with the two-year            flat to yield
0.725 percent and the 10-year             edging up 1 Canadian
cent to yield 1.505 percent.
    Still, the 10-year yield touched its lowest intraday since
Nov. 17 at 1.494 percent, while U.S. benchmark yields hovered
near a five-month trough.                     
    Canadian markets will be closed on Friday for the Good
Friday holiday.

 (Reporting by Fergal Smith; Editing by Bernard Orr)
  
 

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