November 14, 2019 / 9:18 PM / 25 days ago

CANADA FX DEBT-Canadian dollar holds near 1-month low ahead of Poloz speech

 (Adds strategist quotes and details throughout, updates prices)
    * Loonie touches its weakest since Oct. 11 at 1.3270
    * Canada's new housing price index rises 0.2% in September 
    * Canada's 10-year yield hits a 10-day low at 1.465%

    By Fergal Smith
    TORONTO, Nov 14 (Reuters) - The Canadian dollar was little
changed against its U.S. counterpart on Thursday, holding near
an earlier one-month low  as a speech by Bank of Canada Governor
Stephen Poloz loomed and investors grew more nervous about a
global economic slowdown.
    World stocks          fell as Chinese economic data slowed
in October and Germany only narrowly avoided a recession in the
third quarter, adding to worries about the global growth fallout
from the U.S.-China trade war.             
    Canada is a major exporter of commodities, including oil, so
its economy could be hurt by a slowdown in global growth.
    "It certainly feels like a combination of macro risks and
concerns that are weighing on the Canadian dollar," said Bipan
Rai, North America head, FX strategy at CIBC Capital Markets.
"As long you have that trade-related uncertainty, there is going
to be some uncertainty with respect to the Canadian dollar."
    Last month, the Bank of Canada expressed concern about
global trade uncertainty as it cut its growth forecasts and left
its benchmark interest rate on hold at 1.75%.             
    Poloz is due to speak on the fourth industrial revolution at
the Federal Reserve Bank of San Francisco on Thursday night.
Canada's central bank will publish the governor's text at 9:45
p.m. EST (0245 GMT Friday).
    Money markets see chances of an interest rate cut next month
at about 20%.           
    At 3:41 p.m. (2041 GMT), the Canadian dollar          was
trading nearly unchanged at 1.3249 to the greenback, or 75.48
U.S. cents. The currency hit its weakest intraday level since
Oct. 11 at 1.3270.
    U.S. crude oil futures        settled 0.6% lower at $56.77 a
barrel, pressured by a build in domestic inventories and record
production.             
    Canada's new housing price index rose 0.2% in September, the
largest increase in two years, data from Statistics Canada
showed.             
    Canadian government bond prices were higher across a flatter
yield curve in sympathy with U.S. Treasuries. The two-year
           rose 8 Canadian cents to yield 1.534% and the 10-year
            was up 72 Canadian cents to yield 1.473%.
    The 10-year yield touched its lowest intraday level since
Nov. 4 at 1.465%.

 (Reporting by Fergal Smith; Editing by Jonathan Oatis and Peter
Cooney)
  
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below