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CANADA FX DEBT-C$ flat as oil rises and bond spreads widen
November 24, 2017 / 2:42 PM / 16 days ago

CANADA FX DEBT-C$ flat as oil rises and bond spreads widen

    * Canadian dollar at C$1.2716, or 78.64 U.S. cents
    * Bond prices lower across the maturity curve

    TORONTO, Nov 24 (Reuters) - The Canadian dollar strengthened
slightly against its broadly weaker U.S. counterpart on Friday,
as U.S. crude prices extended gains at a two-year high while
widening bond yield spreads weighed on the loonie in
holiday-affected trade.
    The currency had slipped from a 10-day high on Thursday
after tepid retail sales data, but the market could look past
that if oil, a major Canadian export, keeps pushing higher and a
quarterly economic growth report due next week beats central
bank forecasts, according to TD Securities' North American head
of foreign exchange strategy Mark McCormick.
    U.S. crude        prices were up 1.28 percent at $58.76 a
barrel, while Brent         added 0.19 percent to $63.67, with
the North American markets tightening on the partial shutdown of
a pipeline linking Canada with the United States.      
    At 9:21 a.m. ET (1421 GMT), the Canadian dollar          was
trading at C$1.2716 to the greenback, or 78.64 U.S. cents, up
0.03 percent.
    The currency's strongest level of the session was C$1.2702,
while its weakest level was C$1.2747.
    TD's McCormick said the Canadian currency would face
resistance at C$1.2732 and would need to push below C$1.2675 in
the next few days to confirm a strengthening bias.
    The Canadian dollar was lower against the euro and British
pound but gained against the Japanese yen.
    Canadian government bond prices were lower across the
maturity curve, with the two-year            price down 1.5
Canadian cents to yield 1.445 percent and the benchmark 10-year
            2 Canadian cents lower to yield 1.896 percent.
    The Canada-U.S. two-year bond spread widened half a basis
point to -29.9 basis points, while the 10-year spread widened 1
basis point to -43.9 basis points.

 (Reporting by Alastair Sharp; Editing by Phil Berlowitz)
  
 

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