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CANADA FX DEBT-C$ claws back losses after hitting 4-week low
November 30, 2017 / 2:52 PM / 16 days ago

CANADA FX DEBT-C$ claws back losses after hitting 4-week low

    * Canadian dollar at C$1.2869, or 77.71 U.S. cents
    * Loonie touches its weakest since Nov. 1 at C$1.2903
    * Bond prices mixed across the yield curve
    * Canada-U.S. 10-year spread hits widest since July 6

    TORONTO, Nov 30 (Reuters) - The Canadian dollar clawed back
losses against the greenback on Thursday, after hitting an
earlier four-week low as data showed widening in the country's
current account deficit.
    Canada's current account deficit swelled in the third
quarter to C$19.35 billion, the third largest in history, as the
country's international trade gap in goods continued to expand.
            
    Separate data showed that Canadian average weekly earnings
rose 1 percent in September from August.    
    At 9:26 a.m. ET (1426 GMT), the Canadian dollar          was
little changed at C$1.2869 to the greenback, or 77.71 U.S.
cents.
    The currency's strongest level of the session was C$1.2857,
while it touched its weakest since Nov. 1 at C$1.2903.    
    U.S. crude        prices were up 0.75 percent as an OPEC-led
meeting started in Vienna. Initial comments from the group's
members suggested an extension of crude output curbs until the
end of 2018 would be the meeting's most likely outcome.
            
    Oil is one of Canada's major exports.
    Data on Canada's jobs for November and gross domestic
product for the quarter will be released on Friday. That could
help guide expectations for next week's interest rate decision
by the Bank of Canada.
    The central bank raised rates in July and September for the
first time in seven years but has since turned more cautious on
the outlook for the economy.
    Canadian government bond prices were mixed across the yield
curve, with the two-year            up 0.5 Canadian cent to
yield 1.434 percent and the 10-year             flat to yield
1.880 percent.
    The gap between Canada's 10-year yield and its U.S.
equivalent widened by 1.8 basis points to a spread of -51.4
basis points, its widest since July 6.

 (Reporting by Fergal Smith; Editing by Meredith Mazzilli)
  

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