June 21, 2018 / 1:32 PM / 4 months ago

CANADA FX DEBT-C$ near flat after hitting near 1-year low on lower oil

    * Canadian dollar at C$1.3307, or 75.15 U.S. cents
    * Loonie touches its weakest since June 22, 2017 at C$1.3336
    * Price of U.S. oil falls 1.1 percent          
    * Bond prices higher across a flatter yield curve

    TORONTO, June 21 (Reuters) - The Canadian dollar was little
changed against its U.S. counterpart on Thursday after hitting
its weakest in nearly one year earlier in the session, with
lower oil prices and an uncertain outlook for trade weighing on
the currency.
    The price of oil, one of Canada's major exports, fell as
crude exporters in OPEC appeared to be nearing a deal to
increase production. U.S. crude        prices were down 1.1
percent at $65.01 a barrel.                 
    U.S. stock index futures dipped as the impact of an ongoing
trade spat between the United States and China began to appear
in company earnings forecasts, while a media report said Beijing
could target U.S. blue-chip firms.             
    Canada runs a current account deficit so its currency could
suffer if increased risk aversion disrupts the flow of capital.
    At 9:11 a.m. EDT (1311 GMT), the Canadian dollar         
was trading nearly unchanged at C$1.3307 to the greenback, or
75.15 U.S. cents. The currency touched its weakest level since
June 22, 2017 at C$1.3336.         
    The loonie has also been pressured recently by slow-moving
talks to renegotiate the North American Free Trade Agreement and
a trade feud between the United States and Canada.
    Canadian Prime Minister Justin Trudeau on Wednesday said he
doubted whether U.S. President Donald Trump would carry out a
threat to impose tariffs on autos, given the economic damage
such a move would cause.             
    In domestic data, wholesale trade increased by 0.1 percent
in April from March, as higher sales in the machinery, equipment
and supplies subsector were largely offset by declines in the
motor vehicle and parts subsector, Statistics Canada said.
            
    Canadian inflation data for May and the April retail sales
report are due out on Friday and could help guide investor
expectations for an interest rate hike next month from the Bank
of Canada.           
    Investors are betting that Bank of Canada interest rate
hikes will peak before they reach the central bank's estimate of
neutral, as rising trade tensions and high domestic debt loads
threaten to slow the growth of the country's economy.
            
    Canadian government bond prices were higher across the yield
curve, with the two-year            up 4.5 Canadian cents to
yield 1.824 percent and the 10-year             rising 34
Canadian cents to yield 2.146 percent.
    The 10-year yield touched its lowest since April 11 at 2.144
percent.

 (Reporting by Fergal Smith; Editing by Bernadette Baum)
  
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