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CANADA FX DEBT-C$ pulls back from earlier 6-day high as oil dips
June 6, 2017 / 1:32 PM / 5 months ago

CANADA FX DEBT-C$ pulls back from earlier 6-day high as oil dips

    * Canadian dollar at C$1.3471, or 74.23 U.S. cents
    * Loonie touches its strongest since May 31 at C$1.3444
    * Bond prices higher across the yield curve
    * 10-yr yield touches a nearly 7-month low at 1.373 pct

    TORONTO, June 6 (Reuters) - The Canadian dollar was little
changed against its U.S. counterpart on Tuesday, pulling back
from an earlier six-day high as oil prices fell and investors
braced for key events later in the week.
    Prices of oil, one of Canada's major exports, retreated on
concerns that a diplomatic rift between Qatar and several Arab
states including Saudi Arabia could undermine efforts by the
Organization of the Petroleum Exporting Countries to tighten the
market.             
    U.S. crude        prices were down 0.27 percent at $47.27 a
barrel. 
    The Bank of Canada on Thursday will release its review of
developments in the financial system, followed by a news
conference with Governor Stephen Poloz. Investors will weigh his
assessment of the health of the housing and mortgage markets in
light of recent troubles at nonbank lender Home Capital Group
Inc         .    
    A European Central Bank meeting, a parliamentary election in
the UK and testimony by James Comey, former director of the U.S.
Federal Bureau of Investigation, to a Senate committee are also
due on Thursday, while Canada's employment report for May is due
on Friday.
    At 9:08 a.m. ET (1308 GMT), the Canadian dollar          was
trading at C$1.3471 to the greenback, or 74.23 U.S. cents,
nearly unchanged.
    The currency's weakest level of the session was C$1.3485,
while it touched its strongest since May 31 at C$1.3444.
    The United States has asked Canada to eliminate a new
"underhanded" dairy-pricing class that has undercut sales by
U.S. dairies to Canadian processors, U.S. Agriculture Secretary
Sonny Perdue said on Monday.             
    Perdue's comments come as the United States has signaled it
wants to renegotiate the North American Free Trade Agreement
with Canada and Mexico.
    U.S. Treasury yields and the U.S. dollar        dropped to
seven-month lows and world stocks slid as political uncertainty
from the United States to the Middle East and weakness in
commodity markets pushed investors away from risky assets.
            
    Canadian government bond prices were higher across a flatter
yield curve in sympathy with Treasuries. The two-year           
rose 1 Canadian cent to yield 0.71 percent and the 10-year
            climbed 18 Canadian cents to yield 1.393 percent.
    The 10-year yield touched its lowest intraday since Nov. 10
at 1.373 percent.

 (Reporting by Fergal Smith; Editing by Jeffrey Benkoe)
  

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