July 3, 2018 / 1:20 PM / 4 months ago

CANADA FX DEBT-C$ firms against greenback as oil prices climb

    * Canadian dollar at C$1.3149, or 76.05 U.S. cents
    * Price of U.S. oil rises 1.5 percent
    * Bond prices higher across much of the yield curve
    * 10-year yield posts a two-week high intraday at 2.204
percent

    TORONTO, July 3 (Reuters) - The Canadian dollar strengthened
against its U.S. counterpart on Tuesday as oil prices rose to
3-1/2-year highs and the greenback broadly lost ground.
    The U.S. dollar        fell against a basket of major
currencies after the Chinese central bank moved to calm nervous
foreign exchange markets following a fall in the renminbi below
a key psychological level.             
    Canada runs a current account deficit so its economy could
be hurt if the flow of capital slows.
    The price of oil, one of Canada's major exports, rose after
Libya declared a force majeure on some of its crude exports.
U.S. crude        prices were up 1.5 percent to $75.07 a barrel.
      
    The loss of Canadian supplies has helped lift the price of
oil but could restrain domestic economic growth in the third
quarter.
    Canada is also contending with slow-moving talks to revamp
the North American Free Trade Agreement and a trade dispute with
the United States.    
     The White House said on Monday that Canada's decision to
enact tariffs on C$16.6 billion worth of American goods in
retaliation for U.S. tariffs on imports of Canadian steel and
aluminum would not help its economy.             
    At 9:06 a.m. EDT (1306 GMT), the Canadian dollar         
was trading 0.3 percent higher at C$1.3149 to the greenback, or
76.05 U.S. cents. The currency traded in a range of C$1.3133 to
C$1.3207.    
    On Friday, the loonie notched a two-week high at C$1.3131
after a surprise expansion of the domestic economy in April and
business optimism raised expectations for a Bank of Canada
interest rate hike next week.           
    Still, speculators have raised bearish bets on the Canadian
dollar, data from the U.S. Commodity Futures Trading Commission
and Reuters calculations showed on Friday. As of June 26, net
short positions jumped to 32,799 contracts from 14,014 a week
earlier.
    Canadian government bond prices were higher across much of
the yield curve, with the 10-year             rising 12 Canadian
cents to yield 2.153 percent. The 10-year yield touched its
highest intraday level since June 18 at 2.204 percent.
    Canada's employment report for June and trade data for May
are due out on Friday.    

 (Reporting by Fergal Smith; Editing by Bernadette Baum)
  
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below