December 4, 2019 / 2:14 PM / 12 days ago

CANADA FX DEBT-C$ rises to 1-week high ahead of Bank of Canada rate decision

    * Loonie touches its strongest since Nov. 27 at 1.3267
    * Price of U.S. oil increases by 1.7%
    * Canadian productivity grows by 0.2% in the third quarter
    * Canadian bond prices fall across a steeper yield curve

    TORONTO, Dec 4 (Reuters) - The Canadian dollar strengthened
to a one-week high against the greenback on Wednesday, as
investors grew more optimistic about prospects for a U.S.-China
trade deal and awaited an interest rate decision later in the
morning by the Bank of Canada.
    Global shares          rose, paring some declines from the
day before, after a report said that the United States and China
were moving closer to agreeing on the amount of tariffs that
would be rolled back in phase one of a trade deal.             
    Investors had worried that a deal could be delayed.
    The Bank of Canada has expressed concern about the impact of
global trade uncertainty on Canada's commodity-linked economy.
It is expected to leave its benchmark interest rate on hold at
1.75% when the policy decision is announced at 10 a.m. (1500
GMT).
    The price of oil, one of Canada's major exports, rose ahead
of an expected extension to production curbs by OPEC and its
allies, with further support from industry data showing a larger
than forecast drop in U.S. crude stockpiles.             
    U.S. crude oil futures        were up 1.7% at $57.04 a
barrel.
    At 9:04 a.m. (1404 GMT), the Canadian dollar          was
trading 0.2% higher at 1.3268 to the greenback, or 75.37 U.S.
cents. The currency touched its strongest intraday level since
Nov. 27 at 1.3267.
    Canadian labor productivity grew by 0.2% in the third
quarter, as both hours worked and business output slowed,
Statistics Canada said.             
    Canadian government bond prices were lower across a steeper
yield curve, with the two-year            price down 3 Canadian
cents to yield 1.571% and the benchmark 10-year            
falling 25 Canadian cents to yield 1.475%.    

 (Reporting by Fergal Smith; Editing by Steve Orlofsky)
  
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