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CANADA FX DEBT-C$ edges higher despite lower oil prices as greenback dips
September 19, 2017 / 8:52 PM / 3 months ago

CANADA FX DEBT-C$ edges higher despite lower oil prices as greenback dips

 (Adds analyst quotes and details on trading activity; updates
prices)
    * Canadian dollar at C$1.2274, or 81.43 U.S. cents
    * Bond prices mixed across steeper yield curve
    * Domestic manufacturing sales fall 2.6 percent in July

    By Fergal Smith
    TORONTO, Sept 19 (Reuters) - The Canadian dollar edged
higher on Tuesday against its U.S. counterpart, shrugging off
soft domestic manufacturing data and lower oil prices as the
greenback broadly fell ahead of a Federal Reserve interest rate
decision on Wednesday.
    At 4 p.m. EDT (2000 GMT), the Canadian dollar          was
trading at C$1.2274 to the greenback, or 81.47 U.S. cents, up
0.2 percent. The currency traded in a range of C$1.2255 to
C$1.2309.
    The loonie was paring some losses from the day before, when
a Bank of Canada policymaker said the currency's strength will
be a factor in future rate decisions.             
    It touched on Monday its weakest in nearly two weeks at
C$1.2338.
    "We are really just treading water ahead of tomorrow's
announcement by the Fed," said Michael Goshko, corporate risk
manager at Western Union Business Solutions.
    The U.S. dollar        weakened against a basket of
currencies in advance of the Fed decision. Policymakers are
expected to decide on the reduction of the central bank's $4.2
trillion worth of bond holdings.            
    Canadian manufacturing sales dropped by 2.6 percent in July,
the most in more than a year, as annual auto plant shutdowns cut
sales of cars and motor vehicle parts.             
    Prices of oil, one of Canada's major exports, retreated from
near-five-month highs in advance of data expected to show a
build in U.S. crude inventories as imports resume and refineries
were still restarting after recent storm activity.              
  
    Canada posted a budget deficit of C$17.8 billion ($14.5
billion) for the 2016-17 fiscal year, the Finance Department
said, below the preliminary deficit of C$21.85 billion reported
in May.             
    Canadian government bond prices were mixed across a steeper
yield curve, with the two-year            up 2 Canadian cents to
yield 1.557 percent and the 10-year             down 10 Canadian
cents to yield 2.094 percent.
    Canada's August inflation report and retail sales data for
July are due on Friday.

 (Reporting by Fergal Smith; Editing by Bill Trott and Jonathan
Oatis)
  
 

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