February 12, 2019 / 3:57 PM / in 2 months

CANADA FX DEBT-C$ rises on higher oil prices, trade talk hopes

    * Canadian dollar rises 0.3 percent against greenback
    * Price of U.S. oil rises 2.7 percent
    * Canadian bond prices fall across a steeper yield curve

    TORONTO, Feb 12 (Reuters) - The Canadian dollar strengthened
against the greenback on Tuesday, adding to gains since the
start of the year, as oil prices climbed and as hopes of a
resolution of the trade dispute between the United States and
China boosted equities.
    Wall Street rose, fueled by a tentative deal reached by U.S.
lawmakers to avoid another partial government shutdown and
optimism that the U.S. and China could reach an agreement during
their ongoing trade talks.             
    Resolution of the trade dispute could boost prospects for
global growth. That would be helpful for Canada's economy as a
major producer of commodities, including oil.
    U.S. crude        prices climbed 2.7 percent to $53.80 a
barrel on Monday, supported by OPEC-led production cuts, which
Saudi Arabia said it would surpass by more than half a million
barrels per day, and by U.S. sanctions against Iran and
Venezuela.             
    At 10:20 a.m. (1520 GMT), the Canadian dollar          was
trading 0.3 percent higher at 1.3258 to the greenback, or 75.43
U.S. cents. The currency traded in a range of 1.3245 to 1.3312.
    Gains for the loonie come after Canadian data on Friday
showed bumper jobs numbers in January that exceeded market
expectations and highlighted the strength of the economy.
            
    The loonie has advanced 2.9 percent since the start of 2019,
the best performance among G10 currencies.       
    Canadian government bond prices were lower across a steeper
yield curve in sympathy with U.S. Treasuries. The two-year
           fell 2.5 Canadian cents to yield 1.802 percent and
the 10-year             declined 15 Canadian cents to yield
1.921 percent.

 (Reporting by Fergal Smith; Editing by Bernadette Baum)
  
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