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CANADA FX DEBT-C$ near flat as investors position for Poloz, jobs data
June 5, 2017 / 9:07 PM / 3 months ago

CANADA FX DEBT-C$ near flat as investors position for Poloz, jobs data

    * Canadian dollar at C$1.3479, or 74.19 U.S. cents
    * Bond prices lower across the yield curve

    TORONTO, June 5 (Reuters) - The Canadian dollar was little
changed against its U.S. counterpart on Monday, as investors
shrugged off lower oil prices and positioned for comments by
Bank of Canada Governor Stephen Poloz and other events later
this week.
    At 4 p.m. EDT (2000 GMT), the Canadian dollar          was
trading at C$1.3479 to the greenback, or 74.19 U.S. cents,
nearly unchanged.
    The currency was driven by "technically-related" trading,
with investors "jockeying for position" ahead of some key
events, said Mazen Issa, senior FX strategist at TD Securities.
    The Bank of Canada will on Thursday release its review of
developments in the financial system, followed by a news
conference with Poloz. Investors will weigh the central bank
governor's assessment of the health of the housing and mortgage
markets in light of recent troubles at non-bank lender Home
Capital.
    New listings of Toronto homes surged in May from a year
earlier, while sales plunged and price gains slowed narrowly
after rules aimed at cooling the city's red-hot housing market
took effect, data on Monday showed.             
    The European Central Bank meeting and a parliamentary
election in the UK are also due this week, while Canada's
employment report for May is due on Friday.
    Prices of oil, one of Canada's major exports, fell on
concerns that top crude exporter Saudi Arabia and other Arab
states' cutting of ties with Qatar could hamper a global deal to
reduce production.      
    U.S. crude prices        settled 26 cents lower at $47.40 a
barrel.
    Bearish bets on the Canadian dollar have held near a record
high, data from the Commodity Futures Trading Commission and
Reuters calculations showed on Friday. Speculators cut net short
positions on the loonie to 98,187 contracts as of May 30 from
99,109 a week earlier.             
    Canadian government bond prices were lower across the yield
curve in sympathy with U.S. Treasuries. The two-year           
price fell 5 Canadian cents to yield 0.715 percent and the
10-year             declined 11 Canadian cents to yield 1.413
percent.
    On Friday, the 10-year yield touched a nearly seven-month
low at 1.382 percent after weaker-than-expected U.S. employment
data suggested a cautious approach to interest rate hikes from
the Federal Reserve beyond June.

 (Reporting by Fergal Smith, editing by G Crosse)
  
 

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