November 26, 2018 / 3:07 PM / 15 days ago

CANADA FX DEBT-C$ strengthens as oil prices and stocks rebound

    * Canadian dollar rises 0.3 percent against the greenback
    * Price of U.S. oil rallies 2.7 percent
    * Canadian bond prices trade lower across the yield curve

    TORONTO, Nov 26 (Reuters) - The Canadian dollar strengthened
against its U.S. counterpart on Monday, paring some of last
week's decline, as oil prices and stocks rallied.  
    Stocks were boosted by robust sales in the holiday season,
after a steep selloff on Wall Street in the previous session.
            
    Canada exports many commodities, including oil, and runs a
current account deficit, so its economy could benefit from an
improved outlook for the global flow of trade or capital.
    The price of oil recovered some of the previous session's
near-7 percent fall. U.S. crude        prices were up 2.7
percent at $51.77 a barrel.              
    At 9:44 a.m. (1444 GMT), the Canadian dollar          was
trading 0.3 percent higher at 1.3206 to the greenback, or 75.72
U.S. cents. The currency, which fell 0.8 percent last week,
traded in a range of 1.3188 to 1.3230.   
    The loonie gained despite a report that General Motors Co
       plans to announce as early as Monday it will
significantly cut car production in North America and stop
building some low-selling car models.             
    On Sunday, a major Canadian union said it had been told by
GM that there would be no product allocated to the plant in
Oshawa after December 2019. Auto production is one of Canada's
biggest industries.    
    Data on Friday showed that Canada's annual inflation rate
remained above the central bank's target for the ninth straight
month in October, but markets saw few signs the Bank of Canada
would hike interest rates next month.             
    Canadian government bond prices were lower across the yield
curve in sympathy with U.S. Treasuries. The two-year           
fell 3 Canadian cents to yield 2.248 percent and the 10-year
            declined 17 Canadian cents to yield 2.36 percent.
    On Friday, the 10-year yield touched its lowest in more than
two months at 2.33 percent.
    Canada's gross domestic product data for the third quarter
is due on Friday.

 (Reporting by Fergal Smith; editing by Grant McCool)
  
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