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CANADA FX DEBT-C$ bounces off 3-week low, helped by oil price bump

Published 2015-10-28, 09:24 a/m
© Reuters.  CANADA FX DEBT-C$ bounces off 3-week low, helped by oil price bump
USD/CAD
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LCO
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CL
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CA2YT=RR
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CA10YT=RR
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* Canadian dollar at C$1.3221, or 75.64 U.S. cents
* Bond prices moderately higher across the maturity curve

TORONTO, Oct 28 (Reuters) - The Canadian dollar gained
against its U.S. counterpart on Wednesday but remained well
above the C$1.32 level it crashed through a day earlier, as a
bump in chronically weak oil prices provided support for the
commodity-linked currency.
* At 9:09 a.m. ET (1309 GMT), the Canadian dollar
was trading at C$1.3221 to the greenback, or 75.64 U.S. cents,
stronger than Tuesday's official close of C$1.3266, or 75.38
U.S. cents.
* The currency's strongest level of the session was
C$1.3225, while its weakest level was C$1.3281. It had
previously not been above C$1.32 since Oct. 2.
* The U.S. Federal Reserve is expected to hold rates steady
when it announces its policy decision at 2 p.m. ET (1800 GMT),
while investors look for signs pointing to either a hike later
this year or a delay until next year.
* U.S. crude CLc1 prices were up 0.86 percent to $43.57 a
barrel, while Brent LCOc1 added 0.62 percent to $47.10.
* The Canadian dollar was outperforming all of its key
currency counterparts except the Swedish crown, after that
country's central bank expanded its asset purchase program but
declined to cut interest rates.
* The loonie, as Canada's currency is colloquially known, is
expected to trade between C$1.3190 and C$1.3290 against the U.S.
dollar on Wednesday, according to RBC Capital Markets.
* Canadian government bond prices were moderately higher
across the maturity curve, with the two-year CA2YT=RR price up
half a Canadian cent to yield 0.491 percent and the benchmark
10-year CA10YT=RR adding 3 Canadian cents to yield 1.41
percent.
* The Canada-U.S. two-year bond spread was -14.2 basis
points, while the 10-year spread was -61.8 basis points.

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