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CANADA FX DEBT-Canadian dollar sell-off stalls as Wall Street rallies

 (Adds strategist quotes and details throughout; updates prices)
    * Canadian dollar rises 0.1% against the greenback
    * Loonie trades in a range of 1.3353 to 1.3403
    * Price of U.S. oil settles 0.9% higher
    * Canadian bond yields trade mixed across a steeper curve

    By Fergal Smith
    TORONTO, Sept 28 (Reuters) - The Canadian dollar edged
higher against its broadly weaker U.S. counterpart on Monday as
oil clawed back some of this month's decline and stock markets
rose globally, with the loonie finding some support after
posting three straight weekly declines.
    Wall Street surged in a broad rally as investors sought
bargains among sectors hardest hit by the coronavirus recession,
while the U.S. dollar        pulled back from a two-month high
against a basket of major currencies.                         
    Investors are putting aside for now evidence of rising
coronavirus cases, "thinking there is still the vaccine news to
mitigate concerns about a second wave," said Shaun Osborne,
chief currency strategist at Scotiabank.
    "But it has got to be a potential threat for risk assets
going forward and that keeps the CAD a bit more defensive,"
Osborne added.
    Canada runs a current account deficit and is a major
exporter of commodities, including oil, so the loonie tends to
be sensitive to the global flow of trade and capital.
    U.S. crude oil futures        rose 0.9% to settle at $40.60
a barrel             , while the Canadian dollar        was
trading 0.1% higher at 1.3373 to the greenback, or 74.78 U.S.
cents. That was a much smaller gain than for some other G10
currencies.
    The loonie, which on Friday hit a seven-week low at 1.3418,
traded in a range of 1.3353 to 1.3403.
    Quebec, the Canadian province hit hardest by the novel
coronavirus, reported another sharp increase in daily
infections, and media reports said Premier Francois Legault
would announce new restrictions for Montreal and the capital,
Quebec City.             
    Canadian government bond yields were mixed across a steeper
curve, with the 10-year             up less than a basis point
at 0.552%.        
    Canada's GDP data for July is due on Wednesday, which could
help guide expectations for the strength of economic recovery.

 (Reporting by Fergal Smith; Editing by Jonathan Oatis and Peter
Cooney)
  
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