September 26, 2017 / 1:59 PM / 25 days ago

CANADA FX DEBT-C$ firms as central bank speeches in focus

    * Canadian dollar at C$1.2359 or 80.91 U.S. cents
    * Bond prices lower across the maturity curve

    TORONTO, Sept 26 (Reuters) - The Canadian dollar was
marginally stronger against the greenback on Tuesday and
outperformed its peers as investors positioned themselves ahead
of speeches by central bank officials and oil prices held near
more than two-year highs.
    A number of U.S. Federal Reserve officials are speaking this
week, including Chair Janet Yellen. Yellen's speech later in the
day and those by other Fed officials will likely be dissected by
investors looking for clues on whether the central bank will
raise interest rates again in December.
    At 9:30 a.m. ET (1330 GMT), the Canadian dollar          was
trading at C$1.2359 to the greenback, or 80.91 U.S. cents, up
0.1 percent, and outperforming nearly all of its other key
currency counterparts.
    It traded between C$1.2355 and C$1.2401 during the session.
    Bank of Canada Governor Stephen Poloz will also be speaking
on Wednesday. The central bank head is expected to keep the
loonie in check without upsetting his global peers. A rapid
appreciation of the currency could put an early squeeze on the
economy just as it gains momentum, but talking down the currency
too much could open Poloz up to charges that he is manipulating
the currency.             
    Oil, a major Canadian export, held near the more than
two-year highs reached in the previous session, underpinned by
Turkey's threat to cut crude exports from Iraq's Kurdistan
region and further signs that the market was rebalancing.
    U.S. crude        prices were down 0.94 percent to $51.73 a
barrel, while Brent crude         lost 1.34 percent to
$58.23.            
    Canadian government bond prices were mostly lower across the
maturity curve, with the two-year            price down 1.5
Canadian cents to yield 1.607 percent and the benchmark 10-year
            falling 15 Canadian cents to yield 2.114 percent.
    The Canada-U.S. two-year bond spread stood at 16.0 basis
points, while the 10-year spread stood at -12.3 basis points.

 (Reporting by Solarina Ho; Editing by Nick Zieminski)
  
 

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