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CANADA FX DEBT-C$ firms as oil prices climb; Poloz to speak midweek
September 25, 2017 / 1:41 PM / 3 months ago

CANADA FX DEBT-C$ firms as oil prices climb; Poloz to speak midweek

    * Canadian dollar at C$1.2316, or 81.20 U.S. cents
    * Oil prices climb to 8-month high
    * Bond prices mixed across the yield curve
    * Bank of Canada Governor Poloz to speak on Wednesday

    TORONTO, Sept 25 (Reuters) - The Canadian dollar edged
higher on Monday against its broadly firmer U.S. counterpart as
prices of oil, one of Canada's major exports rose, while
investors awaited a speech by Bank of Canada Governor Stephen
Poloz on Wednesday.
    Oil prices rose to their highest in eight months after major
producers said at a meeting in Vienna the global market was well
on its way towards rebalancing.             
    U.S. crude        prices were up 1.18 percent at $51.26 a
barrel.
    The U.S. dollar        climbed against a basket of major
currencies after a surge in support for the far right in German
elections weighed on the euro.             
    At 9:19 a.m. ET (1319 GMT), the Canadian dollar          was
trading at C$1.2316 to the greenback, or 81.20 U.S. cents, up
0.2 percent.
    The currency traded in a range of C$1.2314 to C$1.2350.
    The loonie fell 1.2 percent against the U.S. dollar last
week after a Bank of Canada policymaker said the currency's
strength would be a factor in future interest rate decisions.
    All eyes are now on Poloz's speech on Wednesday, with the
market expecting him to keep the dollar in check without opening
himself to charges from global peers that he is manipulating the
currency.             
    The currency has climbed 9 percent this year.
    Speculators have meanwhile raised bullish bets on the
loonie, data from the U.S. Commodity Futures Trading Commission
and Reuters calculations showed on Friday.
    As of Sept. 19, Canadian dollar net long positions had
climbed to 58,846 contracts, the highest in six weeks, from
50,499 contracts a week earlier.
    U.S. trade negotiators will only partially unveil new text
on modifying a key chapter on investment under NAFTA, two
well-placed sources said on Sunday, underlying the cautious pace
of talks that are supposed to wrap up by the end of the year.
            
    Canadian government bond prices were mixed across the yield
curve, with the two-year            down 1 Canadian cent to
yield 1.611 percent and the 10-year             falling 4
Canadian cents to yield 2.117 percent.
    The gap between Canada's 10-year yield and its U.S.
equivalent narrowed by 1.5 basis points to a spread of -13.5
basis points.     

 (Reporting by Fergal Smith; Editing by Bernadette Baum)
  
 

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