November 4, 2019 / 3:18 PM / 10 days ago

CANADA FX DEBT-C$ sticks to narrow range as investors weigh trade optimism

    * Canadian dollar dips 0.1% against the greenback
    * U.S. crude oil futures rise 1.5%
    * Canadian bond prices fall across a steeper yield curve

    TORONTO, Nov 4 (Reuters) - The Canadian dollar edged lower
against its U.S. counterpart on Monday, keeping to a narrow
trading range ahead of influential domestic data this week as
stock markets were buoyed by prospects of a trade deal between
the United States and China.
    At 9:47 a.m. (1447 GMT), the Canadian dollar          was
trading 0.1% lower at 1.3150 to the greenback, or 76.05 U.S.
cents. The currency, which fell 0.6% last week, traded in a
narrow range of 1.3130 to 1.3160.
    Shares on Wall Street        rose to a record high after
U.S. Commerce Secretary Wilbur Ross said licenses for U.S.
companies to sell components to China's Huawei Technologies Co
would come "very shortly" and that there was no reason a trade
deal could not be on track to be signed this month.             
    Canada is a major exporter of commodities, so its economy
could benefit from an improved outlook for global trade.
    U.S. crude oil futures        were up 1.5% to $57.02 a
barrel, boosted by flagging OPEC discussions of a deeper output
cut next month as well as growing expectations of a U.S.-China
trade deal.             
    Still, the Bank of Canada worried last week that Canada's
economy will be "increasingly tested" by trade uncertainty as it
left its benchmark policy interest rate on hold at 1.75%.
            
    Canada's trade report for September is due on Tuesday and
the October jobs report is due on Friday which can help guide
expectations for the central bank's policy outlook.
    Canadian government bond prices were lower across a steeper
yield curve in sympathy with U.S. Treasuries. The two-year
           fell 5.5 Canadian cents to yield 1.581% and the
10-year             was down 48 Canadian cents to yield 1.496%.

 (Reporting by Fergal Smith, Editing by Franklin Paul)
  
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