May 14, 2018 / 1:34 PM / in 4 months

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

    * Canadian dollar at C$1.2763, or 78.35 U.S. cents
    * Bond prices lower across steeper yield curve

    TORONTO, May 14 (Reuters) - The Canadian dollar edged higher
against its U.S. counterpart on Monday as the greenback broadly
fell and oil prices rose.
    The U.S. dollar        headed for its fourth successive day
of losses as broad risk appetite returned and investors
questioned whether a recent rally by the greenback had run out
of steam.             
    The price of oil, one of Canada's major exports, held near
3-1/2 year highs even as resistance emerged in Europe and Asia
to U.S. sanctions against major crude exporter Iran. U.S. crude
       prices were up 0.16 percent at $70.81 a barrel.
            
    At 9:18 a.m. EDT (1318 GMT), the Canadian dollar         
was trading 0.2 percent higher at C$1.2763 to the greenback, or
78.35 U.S. cents. The currency traded in a range of C$1.2753 to
C$1.2794.
    On Friday, the loonie reached a three-week high at C$1.2730
but was then pressured by domestic data showing a surprise April
jobs decline.                 
    Speculators have cut bearish bets on the Canadian dollar,
data from the U.S. Commodity Futures Trading Commission and
Reuters calculations showed on Friday. As of May 8, net short
positions had fallen to 23,861 contracts, the smallest since
March, from 27,535 a week earlier.    
    Canadian home prices rose slightly in April but the rate of
appreciation continued to decelerate amid softening sales and
higher interest rates. The Teranet-National Bank Composite House
Price Index, which measures changes for repeat sales of
single-family homes, showed prices increased 0.2 percent on a
monthly basis after a flat month in March.             
    Trump administration demands in North American Free Trade
Agreement negotiations meant to push auto jobs back to the
United States may not be enough to spark a shift in where
automakers build cars and trucks.             
    Canada sends about 75 percent of its exports to the United
States so its economy could benefit if a NAFTA deal is reached.
    Canadian government bond prices were lower across a steeper
yield curve, with the two-year            down 2 Canadian cents
to yield 1.977 percent and the 10-year             falling 26
Canadian cents to yield 2.408 percent.
    The 10-year yield touched on Friday its highest since May
2014 at 2.417 percent.

 (Reporting by Fergal Smith
Editing by Nick Zieminski)
  
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