September 20, 2018 / 7:35 PM / in a month

CANADA FX DEBT-C$ strengthens to 3-month high as greenback broadly slides

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    * Canadian dollar rises 0.2 percent against the greenback
    * Loonie touches its strongest since June 6 at 1.2885
    * Price of U.S. oil falls 0.5 percent
    * 10-year yield nears a four-month high at 2.444 percent

    By Fergal Smith
    TORONTO, Sept 20 (Reuters) - The Canadian dollar
strengthened to its highest in more than three months against
its U.S. counterpart on Thursday as the greenback broadly fell
and investors awaited clues on the prospect of a deal to revamp
the NAFTA trade pact.
    At 3:18 p.m. (1918 GMT), the Canadian dollar          was
trading 0.2 percent higher at 1.2908 to the greenback, or 77.47
U.S. cents.
    The currency, which has been boosted this week by optimism
that a deal to renew the North American Free Trade Agreement
would be reached, touched its strongest since June 6 at 1.2885.
    "What we are seeing is money flowing away from the U.S.
dollar into other currencies and the Canadian dollar is
benefiting from that," said Scott Lampard, head of global
markets at HSBC Bank Canada.
    "This is not a groundswell of support for the Canadian
dollar. The gloss is off the U.S. dollar right now."
    The U.S. dollar        fell across the board as a resurgence
in global risk appetite on relief that new U.S. and Chinese
tariffs on reciprocal imports were less harsh than feared hurt
safe-haven demand for the greenback.             
    The Dow Jones Industrial Average was the last among Wall
Street's main indexes to regain record territory as technology
companies led a broad-based rally and trade worries faded.
            
    Canada exports many commodities and runs a current account
deficit. Its economy could be hurt if the global flow of trade
or capital slows, or if NAFTA is scrapped.
    Canadian Prime Minister Justin Trudeau said on Wednesday he
wanted to see flexibility from the United States if the two
sides are to reach a deal on renewing NAFTA, which Washington
insists must be finished by the end of the month.             
    The price of oil, one of Canada's major exports, eased,
slowing an upward surge that had pushed the market toward
four-year highs, after U.S. President Donald Trump called on
OPEC to "get prices down now!"             
    U.S. crude oil futures        settled 0.5 percent lower at
$70.80 a barrel.
    Canada added 13,600 jobs in August, driven by hiring in the
finance, construction and manufacturing industries, according to
a report from ADP.             
    Canada's inflation report for August and July retail sales
data are due on Friday.
    Canadian government bond prices were lower across the yield
curve, with the 10-year             falling 8 Canadian cents to
yield 2.431 percent. The 10-year yield touched its highest
intraday since May 24 at 2.444 percent.

 (Reporting by Fergal Smith
Editing by Nick Zieminski and Tom Brown)
  
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