April 29, 2019 / 1:18 PM / 4 months ago

CANADA FX DEBT-Canadian dollar dips as oil rally falters

    * Canadian dollar retreats 0.1% against the greenback
    * Price of U.S. oil falls 0.2%
    * Canadian bond prices trade mixed across yield curve

    TORONTO, April 29 (Reuters) - The Canadian dollar edged
lower against its U.S. counterpart on Monday as oil prices fell,
but the currency traded in a narrow range ahead of key economic
data and a Federal Reserve interest rate decision later in the
week.
    The price of oil, one of Canada's major exports, extended a
Friday decline that halted a weeks-long rally, after President
Donald Trump demanded that producer club OPEC raise output to
soften the impact of U.S. sanctions against Iran.             
    U.S. crude        prices were down 0.2% at $63.15 a barrel.
    Canada's gross domestic product data for February is due on
Tuesday, which could help guide expectations for economic growth
in the first quarter.
    Last week, the Bank of Canada lowered its growth forecast
for 2019 to 1.2% from 1.7% and held its benchmark interest rate
steady at 1.75% as it worried about a number of headwinds for
the domestic economy, including trade uncertainty.             
    An expanding list of Canadian farm exports is hitting
obstacles at Chinese ports, leaving sellers of soybeans, peas
and pork scrambling amid a bitter diplomatic dispute.    
                
    The U.S. central bank will announce its policy decision on
Wednesday, with Fed Chairman Jerome Powell expected to balance
the strong U.S. growth data against persistent concerns over the
outlook for global growth.             
    At 8:43 a.m. (1243 GMT), the Canadian dollar          was
trading 0.1% lower at 1.3474 to the greenback, or 74.22 U.S.
cents. The currency, which touched a nearly four-month low at
1.3522 last Wednesday, traded in a range of 1.3450 to 1.3479.
    Speculators have cut their bearish bets on the Canadian
dollar, data from the U.S. Commodity Futures Trading Commission
and Reuters calculations showed on Friday. As of April 23, net
short positions had fallen to 47,493 contracts after rising to
the highest since January at 49,162 in the prior week.
                
    Canadian government bond prices were mixed across the yield
curve, with the two-year            price up 1 Canadian cent to
yield 1.541% and the 10-year             falling 7 Canadian
cents to yield 1.694%.

 (Reporting by Fergal Smith
Editing by Paul Simao)
  
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