November 16, 2018 / 2:30 PM / a month ago

CANADA FX DEBT-C$ climbs to one-week high as oil prices rise

    * Canadian dollar rises 0.3 percent against the greenback
    * Price of U.S. oil rises 2.3 percent
    * Canadian manufacturing sales rise 0.2 percent in September
    * Canadian bond prices move higher across the yield curve

    TORONTO, Nov 16 (Reuters) - The Canadian dollar strengthened
to its highest in more than one week against its broadly weaker
U.S. counterpart on Friday, as oil prices rose domestic data
showed that factory sales edged higher in September.
    At 9:15 a.m. (1415 GMT), the Canadian dollar          was
trading 0.3 percent higher at 1.3140 to the greenback, or 76.10
U.S. cents.
    The currency touched its strongest level since Nov. 8 at
1.3137. For the week, it was on track to rise 0.5 percent.
    The price of oil, one of Canada's major exports, rose on
expectations that OPEC and its allies would agree to cut output
next month but prices were still down on the week on concerns
that the global market was oversupplied.       
    U.S. crude        prices were up 2.3 percent at $57.74 a
barrel.
    Canadian factory sales rose 0.2 percent in September from
August on higher shipments of autos as production ramped up
after a series of assembly plant shutdowns, Statistics Canada
said. Analysts in a Reuters poll had forecast a 0.3 percent
gain.             
    In separate domestic data, net foreign investment in
Canadian securities jumped to C$7.70 billion in September from a
year-low C$2.63 billion in August on higher purchases of money
market paper.             
    Gains for the loonie came as mounting uncertainty over
Britain's draft Brexit deal with the European Union cast a
shadow over foreign exchange markets, while comments by Fed
policymakers about slowing global growth weighed on the
greenback.             
    Canadian government bond prices were higher across the yield
curve in sympathy with U.S. Treasuries. The two-year           
rose 2 Canadian cents to yield 2.229 percent and the 10-year
            climbed 17 Canadian cents to yield 2.369 percent.
    The gap between Canada's 2-year yield and its U.S.
equivalent narrowed by 3 basis points to a spread of 59.3 basis
points in favor of the U.S. bond.       

 (Reporting by Fergal Smith
Editing by Susan Thomas)
  
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