July 24, 2019 / 2:13 PM / 3 months ago

CANADA FX DEBT-C$ steadies as currency investors await ECB policy decision

    * Canadian dollar rises 0.1% against the greenback
    * Price of U.S. oil up 0.5%
    * Canadian bond prices higher across the yield curve

    TORONTO, July 24 (Reuters) - The Canadian dollar edged
higher on Wednesday against its U.S. counterpart, steadying
after nearing a one-month low the previous day, as investors
awaited interest rate decisions from major central banks over
the coming week.
    Money markets are pricing in a 54% chance of a 10 basis
point rate cut at Thursday's European Central Bank meeting,
while the Federal Reserve is expected to ease policy at the end
of the month.             
    The Bank of Canada has made clear that it has no intention
of cutting interest rates. But recent strengthening of the
Canadian dollar could ruin the central bank's plan to sit out
rate cuts by global peers.             
    At 9:50 a.m. (1350 GMT), the Canadian dollar          was
trading 0.1% higher at 1.3123 to the greenback, or 76.20 U.S.
cents. The currency, which notched on Monday its weakest
intraday level in nearly one month at 1.3164, traded in a range
of 1.3123 to 1.3147.
    The loonie has lost some ground since reaching a near
nine-month high on Friday at 1.3016, pressured by
weaker-than-expected retail sales and wholesale trade data for
May.                        
    The price of oil, one of Canada's major exports, rose on
Wednesday after an industry group reported a much bigger than
expected drop in U.S. inventories, while the U.S. Navy said it
may have downed a second Iranian drone last week. U.S. crude oil
futures        were up by 0.5% at $57.03 a barrel.             
    Canadian government bond prices were higher across the yield
curve, with the two-year            up 6 Canadian cents to yield
1.428% and the benchmark 10-year             rising 41 Canadian
cents to yield 1.454%.
    The 10-year yield touched its lowest intraday level since
July 4 at 1.453, while the gap between the Canada's 10-year
yield and its U.S. counterpart widened by 2 basis points to 
59.6 basis points, the biggest spread since June 19.

 (Reporting by Fergal Smith; Editing by Steve Orlofsky)
  
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