September 16, 2019 / 2:52 PM / a month ago

CANADA FX DEBT-Loonie rises after attack on Saudi oil facilities

    * Canadian dollar rises 0.3% against the greenback
    * Price of U.S. oil rallies 9.7%
    * Canadian homes sales rise 1.4% in August
    * Canadian bond prices gain across the yield curve

    TORONTO, Sept 16 (Reuters) - The Canadian dollar
strengthened against its U.S. counterpart on Monday, rebounding
from a nine-day low on Friday, as oil prices soared following a
weekend attack on Saudi Arabian oil facilities.
    U.S. crude oil futures        rallied 9.7% to $60.19 a
barrel after the attack halved Saudi Arabia's oil production.
Oil is one of Canada's major exports.             
    At 10:16 a.m. (1416 GMT), the Canadian dollar          was
trading 0.3% higher at 1.3254 to the greenback, or 75.45 U.S.
cents. The currency, which on Friday hit its weakest intraday
level since Sept. 4 at 1.3291, traded in a range of 1.3208 to
1.3266.
    Gains for the loonie came as data from the Canadian Real
Estate Association showed Canadian homes sales rose 1.4% in
August from July, the sixth consecutive month of increased
activity.             
    Meanwhile, foreign investors reduced their holdings of
Canadian securities by C$1.2 billion in July, while Canadian
investment in foreign securities increased by C$12.5 billion,
according to data from Statistics Canada.
    Still, speculators have raised their bullish bets on the
Canadian dollar for the first time in five weeks, data from the
U.S. Commodity Futures Trading Commission and Reuters
calculations showed on Friday. As of Sept. 10, net long
positions had increased to 11,523 contracts from 5,349 in the
prior week.             
    Canadian government bond prices were higher across the yield
curve in sympathy with U.S. Treasuries on Monday. The two-year
           rose 0.5 Canadian cents to yield 1.636% and the
10-year             was up 19 Canadian cents to yield 1.491%.
    On Friday, the 10-year yield touched its highest since July
19 at 1.521%.
    Canada's inflation report for August is due on Wednesday,
which could help guide expectations for the Bank of Canada's
interest rate outlook.                   

 (Reporting by Fergal Smith
Editing by Chris Reese)
  
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