for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up
Company News

CANADA FX DEBT-C$ notches 1-week high as investors bet on faster vaccine rollout

 (Adds strategist quotes and details throughout; updates prices)
    * Canadian dollar gains 0.5% against the greenback
    * Canada's annual inflation rate rises to 0.7% in October
    * Price of U.S. oil settles 0.9% higher
    * Canadian bond yields trade mixed across a flatter curve

    By Fergal Smith
    TORONTO, Nov 18 (Reuters) - The Canadian dollar strengthened
against its U.S. counterpart on Wednesday, as positive news on a
COVID-19 vaccine boosted oil prices and domestic data showing
higher inflation reduced prospects of additional policy easing
from the Bank of Canada.
    The Canadian dollar        was trading 0.5% higher at 1.3041
to the greenback, or 76.68 U.S. cents. The currency touched its
strongest intraday level since last Wednesday at 1.3034.
    Canada's annual inflation rate climbed to 0.7% in October
from 0.5% in September, mainly on higher food prices, Statistics
Canada said. The average of three underlying rates that are
closely watched by the Bank of Canada was at 1.8%, up from 1.7%,
moving closer to the central bank's 2% target.             
    Since March, the Bank of Canada has cut interest rates to
near zero and launched a large scale bond-buying program,
quantitative easing, for the first time.
    "This morning's inflation print modestly weakened the case
for monetary stimulus from the Bank of Canada, but rising oil
prices and an overall improvement in risk sentiment are the key
factors helping nudge the loonie closer to 1.30," said Karl
Schamotta, chief market strategist at Cambridge Global Payments.
     The price of oil, one of Canada's major exports, rose on
hopes OPEC and its allies will delay a planned increase in oil
output and after Pfizer said its COVID-19 vaccine was more
effective than previously reported. U.S. crude oil futures
       settled 0.9% higher at $41.82 a barrel.             
    Market participants are betting that COVID-19 vaccines will
be rolled out faster than was previously expected, which could
help unleash a surge in consumer spending and business
investment, Schamotta said.
    Canadian government bond yields were mixed across a flatter
curve, with the 10-year             down 2.2 basis points at
0.716%.

 (Reporting by Fergal Smith
Editing by Nick Zieminski and Sandra Maler)
  
for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up