October 18, 2019 / 2:44 PM / a month ago

CANADA FX DEBT-Canadian dollar holds near 11-week high as oil prices climb

    * Canadian dollar trades near flat against the greenback
    * Loonie is on track to rise 0.5% for the week
    * Price of U.S. oil increases 0.8%
    * Canadian bond prices trade mixed the yield curve

    TORONTO, Oct 18 (Reuters) - The Canadian dollar was little
changed against its U.S. counterpart on Friday, holding near its
strongest level since July, as oil prices rose for the third
straight day and domestic data showed that home prices edged
higher in September.
    At 10:08 a.m. (1408 GMT), the Canadian dollar          was
trading nearly unchanged at 1.3135 to the greenback, or 76.13
U.S. cents.
    The currency, which notched on Thursday its strongest
intraday level since July 31 at 1.3131, traded in a narrow range
of 1.3132 to 1.3147.
    For the week, the loonie was on track to rise 0.5% after
Britain reached a deal to avoid a disorderly divorce from the
European Union that could have hurt the global economy.
    Canada runs a current account deficit and is a major
exporter of commodities, including oil, so its economy could
benefit from a pick-up in global growth.
    The price of oil, one of Canada's major exports, was
supported by bullish signals from both the Chinese and U.S.
refining sectors and a North Sea crude disruption that proved
temporary. U.S. crude oil futures        rose 0.8% to $54.37 a
barrel.             
    The Teranet-National Bank Composite House Price Index rose
0.1% in September from August. After correcting for seasonal
pressure, the index was higher for the second straight month.
            
    The Bank of Canada, which will make its next interest rate
decision on Oct. 30, has said that housing activity has
recovered more quickly than expected, helped by lower mortgage
rates.        
    Canadian government bond prices were mixed across the yield
curve, with the two-year            up 0.5 Canadian cent to
yield 1.647% and the 10-year             falling 2 Canadian
cents to yield 1.563%.
    On Thursday, the 10-year yield reached a three-month high
intraday at 1.608%.
    Canadian Prime Minister Justin Trudeau should resign if he
fails to win the most seats in next week's election, his main
rival, Conservative opposition leader Andrew Scheer, said.
            
    Polls show Trudeau's Liberals in a statistical tie with the
Conservatives four days ahead of Monday's vote.

 (Reporting by Fergal Smith
Editing by Chizu Nomiyama)
  
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