March 12, 2019 / 1:31 PM / 7 days ago

CANADA FX DEBT-C$ dips after posting near 1-week high as oil climbs

    * Canadian dollar eases 0.1 percent against the greenback
    * Price of U.S. oil gains nearly 1 percent
    * Canadian bond prices rise across the yield curve

    TORONTO, March 12 (Reuters) - The Canadian dollar edged
lower against its U.S. counterpart on Tuesday but held near its
strongest in nearly a week as oil prices rose and tame U.S.
inflation data weighed on the greenback.
    The price of oil, one of Canada's major exports, was
supported by Saudi Arabia's plan for further voluntary supply
curbs in April and a cut in oil exports from Venezuela due to a
power outage. U.S. crude oil futures        rose nearly 1
percent to $57.33 a barrel.    
    The U.S. dollar        fell against a basket of major
currencies after data showed the smallest annual gain for U.S.
consumer prices in nearly 2-1/2 years.                         
    At 9:13 a.m. (1313 GMT), the Canadian dollar          was
trading 0.1 percent lower at 1.3403 to the greenback, or 74.61
U.S. cents. The currency touched its strongest intraday level
since last Wednesday at 1.3383.    
    The six-day high for the loonie came after domestic data on
Friday showed a bumper jobs gain in February.
    Still, money market data indicates that there is about a 20
percent chance of an interest rate cut this year from the Bank
of Canada. The central bank has tightened 125 basis points since
July 2017.           
    Bank of Canada Senior Deputy Governor Carolyn Wilkins is due
to speak on Thursday, while Canadian manufacturing sales data
for January is due on Friday.
    Canadian government bond prices were higher across the yield
curve in sympathy with U.S. Treasuries. The two-year           
rose 1 Canadian cent to yield 1.652 percent and the 10-year
            was up 8 Canadian cents to yield 1.745 percent.
    On Friday, the 10-year yield touched its lowest since June
2017 at 1.732 percent.

 (Reporting by Fergal Smith; editing by Jonathan Oatis)
  
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