October 21, 2019 / 1:50 PM / 2 months ago

CANADA FX DEBT-Loonie at 3-month high as Canadians vote in general election

    * Canadian dollar trades slightly firmer vs U.S. dollar
    * Easing of U.S.-China trade tensions supports CAD

    By Saqib Iqbal Ahmed
    Oct 21 (Reuters) - The Canadian dollar edged higher against
its U.S. counterpart on Monday, hitting a new three-month high,
as millions of Canadians cast their ballots in the country's
43rd general election.
    At 09:37 a.m. (1337 GMT), the Canadian dollar          was
trading up 0.1% at 1.3114 to the greenback, or 76.26 U.S. cents.
    Canadians vote on Monday to determine whether Prime Minister
Justin Trudeau, who swept into office four years ago as a
charismatic figure promising "sunny ways," will remain in power
after two major scandals.             
    Trudeau's Liberals and the main opposition Conservatives led
by Andrew Scheer are in a neck-and-neck race, according to
opinion polls.
    "Domestic  attention  is  squarely  on the 43rd Federal
election today," Shaun Osborne, chief market strategist, at
Scotiabank in Toronto, said in a note.
    "Historically, Federal  elections do not appear to have had 
a significant impact on the underlying trend in the CAD and we
suspect that 2019 may be little different," Osborne said.
    "After some noise around the vote, we think FX players will
refocus attention  on  the  Bank of Canada policy  outlook,  the
 Fed and international backdrop  pretty quickly," he said.
    On Monday, trade sensitive currencies were firmer and the
safe-haven greenback was slightly weaker amid fresh signs of
progress in a long-awaited resolution to the U.S.-China trade
war.
    White House adviser Larry Kudlow said in an interview with
Fox Business that tariffs scheduled for December could be
withdrawn if trade negotiations continue to go well.
            
    Trade-related tensions have been a big worry in recent
months for investors who fret about its impact on global growth.
Canada runs a current account deficit and is a major exporter of
commodities, including oil, so its economy could benefit from a
pick-up in global growth.
    Canadian government bond prices crept lower on Monday, with
the two-year            falling 3 Canadian cent to yield 1.655%
and the 10-year             falling 18 Canadian cents to yield
1.565%.

 (Reporting by Saqib Iqbal Ahmed; editing by Grant McCool)
  
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