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CANADA FX DEBT-C$ flat as upbeat Poloz comments offset lower oil prices
June 8, 2017 / 9:34 PM / 6 months ago

CANADA FX DEBT-C$ flat as upbeat Poloz comments offset lower oil prices

 (Adds analysts quotes, updates prices, changes headline, adds
details throughout)
    * Canadian dollar at C$1.3491, or 74.12 U.S. cents
    * Bond prices little changed across the yield curve

    TORONTO, June 8 (Reuters) - The Canadian dollar was
unchanged on Thursday against its U.S. counterpart as Bank of
Canada Governor Stephen Poloz's upbeat tone on the economy
helped to offset lower oil prices.
    Poloz said he is comforted by recent signs of economic
strength even as the central bank warned that rising consumer
debt levels and an unbalanced housing market have raised
household vulnerabilities.             
    "It seems as if the market is still having a hard time
coming to grips with a tone that seems to be more constructive,"
said Jimmy Jean, senior economist at Desjardins.
    He expects the market to more "aggressively" price in
interest rate hikes as inflation moves higher.
    At 4 p.m. EDT (2000 GMT), the Canadian dollar          was
trading unchanged at C$1.3508 to the greenback, or 74.03 U.S.
cents.
    The steady profile for the currency came ahead of Canada's
employment report for May due out on Friday.
    Prices of oil, one of Canada's major exports, fell again on
Thursday, with a sell-off continuing the day after data showed a
surprise surge in U.S. crude inventories.
    U.S. crude        prices settled 8 cents lower at $45.64 a
barrel.             
    The U.S. dollar        held onto gains against a basket of
currencies as investors took stock of former FBI Director James
Comey's testimony to the U.S. Senate, while the euro weakened
after the European Central Bank kept interest rates on hold.
            
    Canadian housing starts dipped in May as construction
intentions fell in Toronto, another sign that one of the
country's hottest real estate markets might be cooling down.
            
    Separately, Statistics Canada said new housing prices jumped
by 0.8 percent in April from March, the biggest gain in almost a
year, amid keen buyer interest in Toronto and Vancouver.
    Canadian government bond prices were slightly lower across
the yield curve, with the two-year            down 0.5 Canadian
cent to yield 0.718 percent and the 10-year             falling
8 Canadian cents to yield 1.418 percent.        
    On Tuesday, the 10-year yield hit its lowest intraday in
nearly seven months at 1.373 percent.

 (Reporting by Fergal Smith; Editing by Bernadette Baum and
Diane Craft)
  
 

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