Reuters logo
CANADA FX DEBT-C$ hits near 4-week low vs firmer greenback as oil slips
November 29, 2017 / 2:27 PM / 13 days ago

CANADA FX DEBT-C$ hits near 4-week low vs firmer greenback as oil slips

    * Canadian dollar at C$1.2842, or 77.87 U.S. cents
    * Loonie touches its weakest since Nov. 2 at C$1.2859
    * Bond prices lower across the yield curve
    * Canada-U.S. 10-year spread reaches widest since July 11

    TORONTO, Nov 29 (Reuters) - The Canadian dollar weakened to
a nearly four-week low against its U.S. counterpart on Wednesday
as oil prices fell and the greenback added to this week's gains
against a basket of major currencies.
    The U.S. dollar        was helped by data showing the U.S.
economy grew faster than initially thought in the third quarter,
notching its quickest pace in three years.             
    Prices of oil, one of Canada's major exports, slipped as
doubts set in about Russia's willingness to substantially extend
a deal among some of the world's biggest exporters to curb
output.             
    U.S. crude        prices were down 0.22 percent at $57.86 a
barrel.
    At 9:13 a.m. ET (1413 GMT), the Canadian dollar          was
trading at C$1.2842 to the greenback, or 77.87 U.S. cents, down
0.2 percent.
    The currency's strongest level of the session was C$1.2805,
while it touched its weakest since Nov. 2 at C$1.2859.
    Data will be released Friday on Canada's jobs for November
and gross domestic product for the quarter, which could help
guide investor expectations for further interest rate hikes by
the Bank of Canada.
    The central bank raised rates in July and September but has
since turned more cautious on the outlook for the economy. It
will make an interest rate decision next week.
    Vulnerabilities created by Canada's high household debt and
hot housing market remain elevated but should ease over time as
a stronger economy and tighter mortgage requirements help
improve conditions, the Bank of Canada said on Tuesday.
            
    Canadian government bond prices were lower across the yield
curve in sympathy with U.S. Treasuries. The two-year           
fell 2 Canadian cents to yield 1.430 percent and the 10-year
            declined 25 Canadian cents to yield 1.871 percent.
    The gap between the 10-year yield and its U.S. counterpart
widened by 1.1 basis points to a spread of -50.5 basis points,
its widest since July 11.

 (Reporting by Fergal Smith; Editing by Susan Thomas)
  

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below