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Levent Uslu

CANADA FX DEBT-C$ steadies as risk aversion offsets this week's domestic data

23 Aug 2019

(Adds strategist quote and details throughout, updates prices) * Canadian dollar trades little changed against the greenback * Canada's retail sales were unchanged in June * U.S. oil prices decrease by 2.1% * Bond prices move higher across the yield curve By Levent Uslu TORONTO, Aug 23 The Canadian dollar was little changed against its U.S. counterpart on Friday as this week's stronger-than-expected domestic data was offset by reduced investor appetite for risk. U.S. stocks plunged in a broad sell-off as China and the United States traded their latest salvos in a prolonged trade war. Canada exports many commodities, including oil, so its economy could be hurt by a slowdown in the flow of global trade. Data this week showed Canada retail sales in June and inflation in July both beat expectations. "We are really struggling to see the Canadian dollar picking up benefit from this week's data which has been quite significantly better than expected," said Shaun Osborne, chief currency strategist at Scotiabank. "Some focus obviously on trade and risk aversion seems to be spilling over to the CAD to some extent." The Canadian dollar was trading nearly unchanged at 1.3296 to the greenback, or 75.21 U.S. cents at 4:23 p.m. ET(2023 GMT). The currency was down 0.2% for the week. Meanwhile, the price of oil, one of Canada's major exports fell on Friday on worsening trade tensions. U.S. crude oil futures settled 2.1% lower at $54.17 a barrel. Canadian government bond prices were higher across the yield curve, with the two-year up 17.5 Canadian cents to yield 1.379% and the 10-year rising 111 Canadian cents to yield 1.175%. (Reporting by Levent Uslu; editing by Jonathan Oatis and Tom Brown)

CANADA FX DEBT-C$ falls amid escalated tensions, markets await Fed conference

23 Aug 2019

* Canadian dollar falls 0.1% against the greenback * Canada retail sales were unchanged in June * U.S. oil prices decrease 2.8% * Bond prices move higher across the yield curve By Levent Uslu TORONTO, Aug 23 The Canadian dollar weakened against its U.S. counterpart on Friday, adding to the previous session's losses, as escalating trade tensions reduced global risk appetite and investors awaited a speech by the Federal Reserve's chair. U.S. stocks opened lower as China's threat to impose tariffs on $75 billion worth of U.S. goods ratcheted up trade tensions ahead of Fed Chairman Jerome Powell's speech in Jackson Hole, Wyoming. Canada exports many commodities, including oil, so its economy could be hurt by a slowdown in the flow of global trade. The Canadian dollar was trading 0.1% lower at 1.3315 to the greenback, or 75.10 U.S. cents at 9:46 a.m. (1346 GMT). The currency was trading in a range of 1.3293 to 1.3339. Oil prices fell sharply one the worsening U.S.-China trade tensions. U.S. crude oil futures were down 2.8% at $53.8 a barrel. Meanwhile, domestic data showed Canadian retail sales were unchanged in June from May. Analysts surveyed by Reuters had forecast a 0.1% decrease. Canadian government bond prices were higher across the yield curve, with the two-year up 0.5 Canadian cent to yield 1.468% and the 10-year rising 15 Canadian cents to yield 1.274%. (Reporting by Levent Uslu; editing by Jonathan Oatis)

REFILE-CANADA FX DEBT-C$ pares earlier gains as risk appetite falls ahead of Fed conference

22 Aug 2019

(Corrects spelling of strategist's first name in fifth paragraph) * Canadian dollar trades little changed against the greenback * Canada's wholesale trade rose 0.6% in June from May * U.S. oil prices fall 0.6% * Bond prices move lower across the yield curve By Levent Uslu TORONTO, Aug 22 The Canadian dollar steadied against its U.S. counterpart on Thursday, trimming earlier gains as investor appetite for risk decreased ahead of a Federal Reserve central banking conference this week. U.S. stocks were mixed on the first contraction in the manufacturing sector in nearly a decade and uncertainty about future interest rate cuts. Oil prices weakened as worries about the global economy weighed. U.S. crude oil futures settled 0.6% lower at $55.35 a barrel. Fed Chair Jerome Powell's speech on Friday in Jackson Hole, Wyoming, could indicate whether the U.S. central bank will continue to cut interest rates, which could also help guide expectations about the Bank of Canada's interest rate decision. "It's all like a broad turn lower in risk, stocks are lower, crude oil is going lower, and dollar-CAD being sensitive to all of that, is going higher," said Erik Bregar, director and head of FX strategy at the Exchange Bank of Canada. But "it's still very much a range trade, waiting for a clarity from Jerome Powell." The Canadian dollar was trading nearly unchanged at 1.3296 to the greenback, or 75.21 U.S. cents, at 3:17 p.m. (1917 GMT). The currency, which lost some ground it gained earlier, was trading in a range of 1.3276 to 1.3315. Domestic data showed that Canadian wholesale trade increased by 0.6% in June from May. Analysts surveyed by Reuters had forecast a 0.3% increase. Canada's retail sales data is due on Friday, with a Reuters poll forecasting a 0.1% decrease. Canadian government bond prices were lower across the yield curve, with the two-year down 9.5 Canadian cents to yield 1.458% and the 10-year falling 43 Canadian cents to yield 1.267%. (Reporting by Levent Uslu; Editing by Nichola Saminather and Peter Cooney)

CANADA FX DEBT-C$ rises as oil prices increase, Powell speech in focus

22 Aug 2019

* Canadian dollar rises 0.1% against the greenback * Canadian wholesale trade rose 0.6% in June from May * U.S. oil prices increase by 1% * Bond prices move lower across the yield curve By Levent Uslu TORONTO, Aug 22 The Canadian dollar edged higher against its U.S. counterpart on Thursday, adding to the previous day's gains, as oil prices increased and investors awaited the Federal Reserve chairman's speech. The price of oil, one of Canada's major exports, rose on a drop in U.S. crude inventories and OPEC-led supply cuts, although worries about the global economy capped gains. U.S. crude oil futures were up 1% at $56.11 a barrel. Fed Chairman Jerome Powell's speech on Friday in Jackson Hole, Wyoming, could indicate whether the U.S. central bank will continue to cut interest rates, which could also help guide expectations about the Bank of Canada's interest rate decision. Last month, the Bank of Canada highlighted the risks that trade wars pose to the global economy as it left its benchmark interest rate unchanged at 1.75%. The Canadian dollar was trading 0.1% higher at 1.3283 to the greenback, or 75.28 U.S. cents at 9:26 a.m. ET(1326 GMT). The currency, which rallied on Wednesday on stronger-than-expected domestic inflation data, was trading in a range of 1.3276 to 1.3315. Canada's annual inflation rate held steady in July at 2% as lower costs for services were offset by higher prices for durable goods, beating estimates for a 1.7% inflation rate. The rise for the loonie came as domestic data showed a 0.6% increase in Canadian wholesale trade in June from May. Analysts surveyed by Reuters had forecast a 0.3% increase. Canada's retail sales data is due on Friday, with a Reuters poll estimating a 0.1% decrease. Canadian government bond prices were lower across the yield curve, with the two-year down 5.5 Canadian cents to yield 1.437% and the 10-year falling 39 Canadian cents to yield 1.263%. (Reporting by Levent Uslu; editing by Nichola Saminather and Jonathan Oatis)

CANADA FX DEBT-C$ trims earlier gains as the greenback rallies on Fed minutes

21 Aug 2019

(Adds market player quotes and details throughout, updates prices) * Canadian dollar rises 0.2% against the greenback * Canada's annual inflation rate held steady in July at 2% * U.S. oil prices fall by 0.8% * Bond prices move lower across the yield curve By Levent Uslu TORONTO, Aug 21 The Canadian dollar strengthened against its U.S. counterpart on Wednesday, recovering from a two-month low it hit the previous day after stronger-than-expected domestic inflation data, but earlier gains were capped as the greenback rallied broadly. The U.S. dollar gained against a basket of currencies after minutes from the Federal Reserve's July meeting showed that policymakers were united in wanting to avoid the appearance of being on the path to further rate cuts. Canada's annual inflation rate held steady in July at 2% as lower costs for services were offset by higher prices for durable goods. Analysts had expected the annual rate to fall to 1.7% from 2% in June. "The Canadian dollar and other major currencies are selling off in response to a lowering of odds of further monetary easing from the Federal Reserve," said Karl Schamotta, director of global markets strategy at Cambridge Global Payments. But "the inflation data this morning is underpinning the rally that we've seen." The Canadian dollar was trading 0.2% higher at 1.3289 to the greenback, or 75.25 U.S. cents, at 3:12 p.m. (1912 GMT). The currency, which on Tuesday touched its weakest intraday level since June 19, was trading in a range of 1.3254 to 1.3324. Oil futures gave up earlier gains as increases in refined product inventories and lingering worries about the global economy offset U.S. government data showing a drawdown in domestic crude stocks. U.S. crude oil futures settled 0.8% lower at $55.68 a barrel. Canada's retail sales data is due on Friday, with a Reuters poll forecasting a 0.1% decrease, which could help guide expectations about the Bank of Canada's interest rate decision. Canadian government bond prices were lower across the yield curve, with the two-year down 10 Canadian cents to yield 1.395% and the 10-year falling 53 Canadian cents to yield 1.213%. (Reporting by Levent Uslu; Editing by Nichola Saminather and Peter Cooney)

CANADA FX DEBT-Loonie strengthens as domestic inflation beats estimates

21 Aug 2019

* Canadian dollar rises 0.4% against the greenback * Canada's annual inflation rate held steady in July at 2.0% * U.S. oil prices increase by 1.4% * Bond prices move lower across the yield curve By Levent Uslu TORONTO, Aug 21 The Canadian dollar strengthened against its U.S. counterpart on Wednesday, rebounding from a two-month low it hit the previous session, after stronger-than-expected domestic inflation data. Canada's annual inflation rate held steady in July at 2.0% as lower costs for services were offset by higher prices for durable goods. Analysts had expected the annual rate to fall to 1.7% from 2.0% in June. The Canadian dollar was trading 0.4% higher at 1.3263 to the greenback, or 75.40 U.S. cents, at 9:43 a.m. ET (1343 GMT). The currency, which on Tuesday touched its weakest intraday level since June 19, was trading in a range of 1.3254 to 1.3324. The rise for the loonie came as the price of oil, one of Canada's major exports, rose on Wednesday after industry data showed a larger than expected drop in U.S. crude inventories, but gains were capped by lingering worries about a possible global recession. U.S. crude oil futures were up 1.4% at $56.94 a barrel. Canada's retail sales data is due on Friday, with a Reuters poll forecasting a 0.1% decrease, which could help guide expectations about the Bank of Canada's interest rate decision. Canadian government bond prices were lower across the yield curve, with the two-year down 7.5 Canadian cents to yield 1.382% and the 10-year falling 54 Canadian cents to yield 1.214%. (Reporting by Levent Uslu; editing by Jonathan Oatis)

CANADA FX DEBT-C$ rebounds from a 2-month low ahead of economic data

20 Aug 2019

(Adds market player quote and details throughout, updates prices) * Canadian dollar rises 0.1% against the greenback * U.S. oil prices increase by 0.2% * Bond prices move higher across the maturity curve By Levent Uslu TORONTO, Aug 20 The Canadian dollar edged higher against its U.S. counterpart on Tuesday, recovering from a two-month low it touched earlier, as investors awaited domestic economic data expected this week. Canadian inflation data for July is due on Wednesday and retail sales for June will come out on Friday. Reuters polls predicted a 1.7% annual rate of inflation and a 0.1% decrease for June retail sales. "Key points will be tomorrow's CPI and then retail sales on Friday ... so I think people are just more of a wait-and-see on the data," said Don Mikolich, executive director of foreign exchange sales at CIBC Capital Markets The Canadian dollar was trading 0.1% higher at 1.3311 to the greenback, or 75.13 U.S. cents, at 3:44 p.m. (1944 GMT). Earlier in the day, the currency touched it weakest intraday level since June at 1.3346. The rise for the loonie came as the price of oil, one of Canada's major exports, steadied on optimism that U.S.-China trade tensions will ease and hopes that major economies will take stimulus measures to ward off a possible economic slowdown. Oil prices had earlier fallen after the Organization of Petroleum Exporting Countries cut its forecast for global oil demand growth in 2020. U.S. crude oil futures settled 0.2% higher at $56.34 a barrel. Canadian factory sales decreased by 1.2% in June from May on lower petroleum and coal product sales, domestic data showed, although the decline was less than the 1.7% forecast. Canadian government bond prices were higher across the yield curve, with the two-year up 3 Canadian cents to yield 1.343% and the 10-year rising 22 Canadian cents to yield 1.165%. (Reporting by Levent Uslu; Editing by Peter Cooney)

CORRECTED-CANADA FX DEBT-Loonie hits a 2-month low as oil prices, risk appetite fall

20 Aug 2019

(Changes the price change of oil in bullets from 0.3% to 1.5%) * Canadian dollar falls 0.1% against the greenback * Loonie touches its lowest point since June 19 * U.S. oil prices are down 1.5% * Bond prices move higher across the maturity curve By Levent Uslu TORONTO, Aug 20 The Canadian dollar weakened to a two-month low against its U.S. counterpart on Tuesday as investor appetite for risk eased and oil prices decreased. U.S. stocks opened slightly lower as investors paused after a three-day run driven by hopes that major economies would act to counter a global economic downturn. Oil prices edged lower on Tuesday on persisting concerns over demand. U.S. crude oil futures were down 1.5% at $55.38 a barrel. Canada exports many commodities, including oil, so its currency tends to move according to the signal that stocks send about the outlook for the global economy. At 9:40 a.m. (1340 GMT), the Canadian dollar was trading 0.1% lower at 1.3340 to the greenback, or 74.96 U.S. cents. The currency touched its weakest intraday level since June 19 at 1.3346. The fall for the loonie came as Canadian factory sales decreased by 1.2% in June from May on lower petroleum and coal product sales, domestic data showed, although it was less than forecast. Analysts surveyed by Reuters had forecast a 1.7% decrease. Canadian government bond prices were higher across the yield curve in sympathy with U.S. Treasuries. The two-year rose 7 Canadian cents to yield 1.322% and the benchmark 10-year was up 58 Canadian cents to yield 1.128%. (Reporting by Levent Uslu; editing by Jonathan Oatis)

CANADA FX DEBT-C$ weakens to a 4-day low as the greenback rallies

19 Aug 2019

* Canadian dollar fell 0.5% against the greenback * U.S. crude oil prices increase by more than 2% * Canadian bond prices move lower across the yield curve By Levent Uslu TORONTO, Aug 19 The Canadian dollar weakened to a four-day low against its U.S. counterpart on Monday, despite increasing oil prices, as the greenback rallied broadly on rising global risk appetite. The U.S. dollar strengthened against a basket of currencies as risk sentiment gradually improved after a week of turmoil on hopes that major central banks would look to launch fresh stimulus measures to lift their sluggish economies. "The U.S. dollar is up across the board today so this seems to be just a broad based dollar rally that's weakened the Canadian dollar," said Blake Jespersen, managing director of foreign exchange sales at BMO Capital Markets. At 3:06 p.m. (1906 GMT), the Canadian dollar was trading 0.5% lower at 1.3325 to the greenback, or 75.05 U.S. cents. The currency touched its weakest intraday level since last Thursday at 1.3332. Meanwhile, the price of oil, one of Canada's major exports, was up after a weekend attack on a Saudi oil facility by Yemen's Houthi forces and as traders looked for signs that top economies would take measures to counteract a global slowdown. U.S. crude oil futures settled 2.4% higher at $56.21 a barrel. Canada's manufacturing sales data for June is due on Tuesday, with a Reuters poll forecasting a 1.7% decrease, which could help guide expectations about the Bank of Canada's interest rate decision. Canadian government bond prices were lower across the yield curve in sympathy with U.S. Treasuries. The two-year fell 4.5 Canadian cents to yield 1.359% and the 10-year was down 14 Canadian cents to yield 1.178%. On Thursday, the 10-year yield touched its lowest level since October 2016 at 1.083%. (Reporting by Levent Uslu Editing by Nick Zieminski)

CANADA FX DEBT-Loonie steadies as global risk sentiment improves

19 Aug 2019

* Canadian dollar trades nearly unchanged against the greenback * U.S. crude oil prices increase by more than 1% * Canadian bond yields rise broadly By Levent Uslu TORONTO, Aug 19 The Canadian dollar steadied against its U.S. counterpart on Monday, after a week of losing some ground, as risk appetite gradually returned to global markets. U.S. stocks opened higher on Monday as signs of an interest rate reform in China bolstered hopes that major economies would act to stave off the slowing economic effects of escalating global trade tensions. Canada exports many commodities, including oil, so its currency tends to benefit from the bullish signal that rising stocks sends about the outlook for the global economy. At 9:25 a.m. (1325 GMT), the Canadian dollar was trading nearly unchanged at C$1.3260 to the greenback, or 75.41 U.S. cents. The currency, which last Thursday touched its weakest intraday level since Aug. 7 at C$1.3339, was trading in a range of C$1.3251 to C$1.3277. Meanwhile, the price of oil rose following a weekend attack on a Saudi oil facility by Yemeni separatists and as traders looked for signs of progress in U.S.-China trade negotiations. U.S. crude oil futures were up 1.9% at $55.91 a barrel. Canadian government bond prices were lower across the yield curve in sympathy with U.S. Treasuries. The two-year climbed 1.8 basis points to yield 1.354% and the benchmark 10-year rose 2.6 basis points to yield 1.188%. On Thursday, the 10-year yield touched its lowest level since October 2016 at 1.083%. (Reporting by Levent Uslu Editing by Nick Zieminski )

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