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CANADA FX DEBT-C$ falls with lower oil, bond prices gain
April 18, 2017 / 1:34 PM / 5 months ago

CANADA FX DEBT-C$ falls with lower oil, bond prices gain

    * Canadian dollar at C$1.3371, or 74.79 U.S. cents
    * Bond prices higher across flatter maturity curve

    TORONTO, April 18 (Reuters) - The Canadian dollar fell to a
near one-week low against its U.S. counterpart and lost ground
versus a string of other currencies on Tuesday, as oil prices
hit an 11-day low and a snap British election added to
geopolitical jitters from North Korea to France.
    At 8:45 a.m. ET (1245 GMT), the Canadian dollar          was
trading at C$1.3371 to the greenback, or 74.79 U.S. cents,
weaker than the Bank of Canada's official close on Monday of
C$1.3316, or 75.09 U.S. cents.
    That weakness came even as a steeper-than-expected decline
in U.S. home construction kept the U.S. dollar down against a
basket of currencies.             
    The loonie fell sharply against the British pound, which was
at its strongest levels in months after British Prime Minister
Theresa May surprised markets by calling an early parliamentary
election for June 8, and was also weaker against the euro, Swiss
franc and Japanese yen. 
    Loonie watchers are also wary that Bank of Canada Deputy
Governor Carolyn Wilkins may present a cautious tone in a speech
on automation, productivity and monetary policy due at 12:30
p.m. (1630 GMT).
    French voters will go to the polls on Sunday in a first
round that appears to be a tight four-way race led by a centrist
and a far-right candidate.             
    Investors are also nervous about tensions over North Korea,
which failed to launch a ballistic missile over the weekend.
    Canadian government bond prices were higher across a flatter
maturity curve, with the two-year            price up 3.5
Canadian cents to yield 0.712 percent and the benchmark 10-year
            rising 33 Canadian cents to yield 1.478 percent.
    That was the 10-year's lowest yield since November.
    U.S. crude        prices were down 0.59 percent to $52.34 a
barrel, while Brent         lost 0.72 percent to $54.96, as U.S.
drilling data suggested that shale oil output in May could post
the biggest monthly increase in more than two years.
            
    Oil is a major Canadian export.

 (Reporting by Alastair Sharp; Editing by Nick Zieminski)
  
 

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