March 29, 2017 / 1:50 PM / 6 months ago

CANADA FX DEBT-C$ holds its ground vs broadly stronger greenback

    * Canadian dollar at C$1.3380, or 74.74 U.S. cents
    * Bond prices higher across the yield curve

    TORONTO, March 29 (Reuters) - The Canadian dollar was little
changed on Wednesday against its broadly stronger U.S.
counterpart as prices of oil, one of Canada's major exports,
rose for the second straight day.    
    Despite an increase in U.S. crude inventories, oil added to
gains, benefiting from Libyan supply disruptions and
expectations that an output cut led by the Organization of
Petroleum Exporting Countries would be extended.             
    U.S. crude        prices were up 0.27 percent at $48.5 a
barrel.
    The U.S. dollar        rose against a basket of major
currencies after a Reuters report that European Central Bank
policymakers were wary of making any changes to their policy
message in April pressured the euro.             
    At 9:19 a.m. ET (1319 GMT), the Canadian dollar          was
trading at C$1.3380 to the greenback, or 74.74 U.S. cents,
slightly stronger than Tuesday's close of C$1.3383, or 74.72
U.S. cents.
    The loonie traded in a range of C$1.3356 to C$1.3401. On
Tuesday, it touched C$1.3415, its weakest point in nearly two
weeks.
    The steady bias on Wednesday for the currency came one day
after the Bank of Canada stuck to its cautious tone. The
nation's economy would tip into recession if interest rates were
raised today, said Stephen Poloz, the central bank's governor.
            
    Still, economists expect Canada's gross domestic product to
show a 0.3 percent rise for January, which could set the stage
for a stronger performance in the first quarter than initially
expected.         
    The January GDP data is due for release on Friday.
    Canadian government bond prices were higher across the yield
curve, with the two-year            up 3 Canadian cents to yield
0.725 percent and the 10-year             rising 20 Canadian
cents to yield 1.604 percent.
    On Tuesday, the two-year yield hit its lowest in nearly
seven weeks at 0.719 percent.     

 (Reporting by Fergal Smith; Editing by Lisa Von Ahn)
  
 

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