October 15, 2019 / 3:11 PM / a month ago

CANADA FX DEBT-Loonie gains as IMF sticks to its Canadian growth forecast

    * Canadian dollar rises 0.2% against the greenback
    * IMF leaves its Canadian 2019 growth forecast unchanged at
1.5%
    * Price of U.S. oil decreases 0.2%
    * Canadian bond prices trade mixed across a flatter yield
curve

    TORONTO, Oct 15 (Reuters) - The Canadian dollar strengthened
against its U.S. counterpart on Tuesday as U.S. stocks rose and
the IMF left its 2019 growth projection for Canada unchanged.
    Wall Street advanced as upbeat earnings reports from
JPMorgan Chase, UnitedHealth and Johnson & Johnson allayed
concerns about the fallout from a prolonged U.S.-China trade war
on corporate America.             
    Canada runs a current account deficit so its economy could
benefit from a pick-up in the global flow of capital.
    The International Monetary Fund cut its global growth
forecast for 2019 to 3%, its lowest level since the global
financial crisis, but its projection for Canada was unchanged
from its previous forecast in July at 1.5%.             
    Oil prices fell for a second straight day amid U.S.-China
trade talks which have investors on edge. U.S. crude oil futures
       were down 0.2% at $53.48 a barrel.             
    At 10:38 a.m. (1438 GMT), the Canadian dollar          was
trading 0.2% higher at 1.3209 to the greenback, or 75.71 U.S.
cents.
    The currency, which last Friday notched a one-month high at
1.3171 after data showing a much bigger-than-expected domestic
jobs gain, traded in a range of 1.3207 to 1.3238.             
    Canada's inflation report for September, due on Wednesday,
could help guide expectations for the Bank of Canada policy
outlook. The central bank, which has left interest rates on hold
this year even as some of its major peers have eased, is due to
make its next rate decision on Oct. 30.
    Canadian government bond prices were mixed across a flatter
yield curve, with the two-year            down 0.6 Canadian
cents to yield 1.657% and the 10-year             rising 19
Canadian cents to yield 1.499%.
    Last Friday, the 10-year yield touched its highest intraday
level since July 18 at 1.545%.

 (Reporting by Fergal Smith; Editing by David Gregorio)
  
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