November 27, 2019 / 2:40 PM / 8 days ago

CANADA FX DEBT-C$ holds near 5-day high as investors embrace trade deal hopes

    * Canadian dollar trades near flat against the greenback
    * Loonie touches its strongest since Nov. 22 at 1.3261
    * Price of U.S. oil falls 0.3%
    * Canadian bond prices fall across a steeper yield curve

    By Fergal Smith
    TORONTO, Nov 27 (Reuters) - The Canadian dollar was little
changed against its U.S. counterpart on Wednesday, holding near
an earlier five-day high as optimism that a trade deal would be
reached between the United States and China helped support
global stocks.
    World shares          made another push for an all-time high
after U.S. President Donald Trump said Washington and Beijing
were in the final throes of inking an initial trade deal.
            
    The Bank of Canada, which will make a policy decision next
week, has expressed concern about the impact of trade conflicts
on Canada's commodity-linked economy.
    The central bank is now expected to hold rates through to
the end of next year, according to a slim majority of economists
in a Reuters poll, with forecasts on whether or not the central
bank holds or cuts sitting on a knife's edge through 2020.
            
    At 9:18 a.m. (1418 GMT), the Canadian dollar          was
trading nearly unchanged at 1.3270 to the greenback, or 75.36
U.S. cents. The currency touched its strongest intraday level
since Nov. 22 at 1.3261.
    The five-day high for the loonie came after Canada's longest
railroad strike in a decade ended on Tuesday. Canadian National
Railway Co          reached a tentative agreement with workers,
but shippers warned it could take weeks before service bounces
back to normal.              
    The price of oil, one of Canada's major exports, fell as an
industry report showing a surprise boost in U.S. crude
inventories. U.S. crude oil futures        were down 0.3% at
$58.24 a barrel.             
    Canadian government bond prices were lower across a steeper
yield curve in sympathy with U.S. Treasuries after data showed
that new orders for key U.S.-made capital goods increased by the
most in nine months in October.             
    The two-year            fell 4 Canadian cents to yield
1.589% and the 10-year             was down 33 Canadian cents to
yield 1.477%.

 (Reporting by Fergal Smith; editing by Jonathan Oatis)
  
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