May 1, 2017 / 1:56 PM / 7 months ago

CANADA FX DEBT-C$ holds near 14-month lows as oil prices decline

    * Canadian dollar at C$1.3654, or 73.24 U.S. cents
    * Bond prices slightly lower across the yield curve

    TORONTO, May 1 (Reuters) - The Canadian dollar was little
changed on Monday against its U.S. counterpart as oil prices
fell, with the currency hovering above the 14-month intraday low
struck in the previous session.
    Last week, the loonie fell 1.1 percent pressured by an
uncertain outlook for the North American Free Trade Agreement
and mortgage market concerns.    
    Home Capital Group Inc         , Canada's biggest non-bank
mortgage lender, reported on Monday an initial draw down on a
C$2 billion credit line it secured last week. Last month
regulators accused the company of making "materially misleading
statements" to investors.
    U.S. crude        prices were down 0.81 percent at $48.93 a
barrel as rising oil output and drilling in the United States
countered Organization of the Petroleum Exporting Countries-led
production cuts.             
    Oil is one of Canada's major exports.
    At 9:16 a.m. ET (1316 GMT), the Canadian dollar          was
trading at C$1.3654 to the greenback, or 73.24 U.S. cents,
slightly weaker than Friday's official close of at C$1.3650, or
73.26 U.S. cents.
    The currency traded in a range of C$1.3640 to C$1.3687. It
touched on Friday its weakest since February 2016 at C$1.3697.
    Data on Friday showed that Canada's economy stalled in
February. But economists say that the economy remains on track
for solid growth in the first quarter.             
    Speculators have ramped up bearish bets on the Canadian
dollar to the most since February 2016, data from the Commodity
Futures Trading Commission and Reuters calculations showed on
Friday. Canadian dollar net short positions jumped to 42,642
contracts as of April 25 from 33,252 a week earlier.
            
    Canadian government bond prices were slightly lower across
the yield curve in sympathy with U.S. Treasuries after a U.S.
government shutdown was averted, and U.S. stock index futures
gained ground.
    The two-year            price dipped 0.5 Canadian cent to
yield 0.725 percent, and the 10-year             fell 2 Canadian
cents to yield 1.552 percent.
    Canada's trade report for March is due on Thursday, and the
April employment report is due on Friday.

 (Reporting by Fergal Smith Editing by W Simon)
  
 

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