September 14, 2018 / 1:52 PM / 2 months ago

CANADA FX DEBT-C$ dips but on track to post biggest weekly gain in 5 months

    * Canadian dollar at C$1.3020, or 76.80 U.S. cents
    * Loonie on track to rise 1.1 percent for the week
    * Price of U.S. oil rises 0.5 percent
    * Bond prices move lower across steeper yield curve

    TORONTO, Sept 14 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Friday as the greenback rose
broadly, but the loonie was on course for its best weekly
performance in five months.
    At 9:15 a.m. (1315 GMT), the Canadian dollar          was
trading 0.2 percent lower at C$1.3020 to the greenback, or 76.80
U.S. cents.
    The currency, which touched on Thursday its strongest in two
weeks at C$1.2976, traded in a range of C$1.2984 to C$1.3027.
    The loonie has been boosted this week by higher oil prices
and optimism that a deal to renew the North American Free Trade
Agreement will be reached. It has climbed 1.1 percent since the
start of the week, the most since April.
    The price of oil, one of Canada's major exports, was
modestly higher on Friday after falling by the most in a month
in the previous session, as the focus returned to supply
concerns ahead of a November deadline for U.S. sanctions on
Iranian crude.             
    U.S. crude        prices were up 0.5 percent at $68.92 a
barrel.
    The U.S. dollar        gained against a basket of other
major currencies as U.S. retail sales rose less than forecast in
August, but revised higher readings on July sales supported the
view of solid economic expansion in the third quarter.
            
    The ratio of Canadian household debt to income widened to
169.1 percent in the second quarter from an upwardly revised
168.3 percent in the first quarter, Statistics Canada said.
            
    The Bank of Canada has worried that historically high
household indebtedness could weigh on the economy as interest
rates rise. Money markets expect the central bank to raise rates
once more this year.           
    Canadian government bond prices were lower across a steeper
yield curve in sympathy with U.S. Treasuries. The 10-year
            declined 28 Canadian cents to yield 2.360 percent.
    The 10-year yield touched its highest intraday since Aug. 8
at 2.365 percent.

 (Reporting by Fergal Smith; Editing by Steve Orlofsky)
  
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