September 5, 2019 / 2:14 PM / 16 days ago

CANADA FX DEBT-C$ climbs to a 3-week high on signs of easing trade tensions

    * Canadian dollar rises 0.2% against the greenback
    * Loonie touches its strongest since Aug. 13 at 1.3192
    * Price of U.S. oil increases 0.8%
    * Canada's 10-year yield touches a near two-week high at
1.247%

    TORONTO, Sept 5 (Reuters) - The Canadian dollar strengthened
to a three-week high against its U.S. counterpart on Thursday,
adding to gains after the Bank of Canada's interest rate
decision the day before, as hopes rose of easing trade tensions
between the United States and China.
    At 9:45 a.m. (1345 GMT), the Canadian dollar          was
trading 0.2% higher at 1.3199 to the greenback, or 75.76 U.S.
cents. The currency touched its strongest intraday level since
Aug. 13 at 1.3192.
    Stocks          climbed globally as Washington and Beijing
agreed to hold high-level trade talks next month.             
    On Wednesday, the Bank of Canada worried about the damage to
the global economy from the U.S.-China trade war but kept its
benchmark interest rate on hold at 1.75%. The central bank made
no mention of future moves despite rate cuts this year from some
of its global peers, including the Federal Reserve.             
    Bank of Canada Deputy Governor Lawrence Schembri is due to
speak on the economy later on Thursday. The central bank will
release his prepared remarks at 11:45 a.m. (1545 GMT).
    The price of oil, one of Canada's major exports, was boosted
by hopes of progress in the U.S.-China trade row, although a
report showing U.S. crude inventories unexpectedly increased
weighed on prices. U.S. crude oil futures        gained 0.8% to
$56.69 a barrel.             
    Canadian government bond prices were lower across a steeper
yield curve in sympathy with U.S. Treasuries. The two-year
           fell 14.5 Canadian cents to yield 1.417% and the
10-year             was down 105 Canadian cents to yield 1.243%.
    The 10-year yield touched its highest intraday since Aug. 23
at 1.247%.
    Canada's jobs report for August is due on Friday.

 (Reporting by Fergal Smith; Editing by Steve Orlofsky)
  
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