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CANADA FX DEBT-C$ weakens as G20 underwhelms but oil rally limits drop

Published 2016-02-29, 09:35 a/m
© Reuters.  CANADA FX DEBT-C$ weakens as G20 underwhelms but oil rally limits drop
USD/CAD
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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$1.3534 or 73.89 U.S. cents
* Bond prices mixed across the maturity curve

TORONTO, Feb 29 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Monday after a Group of 20
meeting underwhelmed, but losses were pared as crude oil prices
rose and giant commodity consumer China eased monetary policy in
an attempt to spur growth.
The risk-sensitive commodity currency rose 1.8 percent last
week as crude oil prices and global stocks rallied.
A weekend meeting of G20 finance chiefs ended with no new
plan to spur global growth.
However, oil prices strengthened on rising hopes that the
market has bottomed out and as OPEC kingpin Saudi Arabia said it
would work with other producers to limit oil market volatility.

U.S. crude CLc1 prices were up 1.40 percent at $33.24 a
barrel.
In addition, China's central bank resumed its policy easing
cycle, cutting the reserve requirement ratio by 50 basis points,
taking the ratio to 17 percent for the biggest lenders.

At 9:22 a.m. EST (1422 GMT), the Canadian dollar CAD=D4
was trading at C$1.3534 to the greenback, or 73.89 U.S. cents,
weaker than Friday's official close of C$1.3514, or 74 cents.
The currency's strongest level of the session was C$1.3506,
while its weakest was C$1.3586. On Friday, it touched its
strongest since Dec. 8 at C$1.3505.
Canada's current account deficit widened modestly in the
fourth quarter to C$15.38 billion ($11.34 billion) from a
revised C$15.31 billion in the third quarter.
Canadian producer prices rose 0.5 percent in January, the
first gain in six months, as higher costs for vehicles offset
lower energy prices.
Bearish bets by speculators against the Canadian dollar were
pared further after reaching five-month highs in January.
Net short Canadian dollar positions decreased to 36,940
contracts in the week ended Feb. 23 from 45,085 in the prior
week, Commodity Futures Trading Commission data showed on
Friday.
Canadian government bond prices were mixed across the
maturity curve, with the two-year CA2YT=RR price flat to yield
0.518 percent and the benchmark 10-year CA10YT=RR rising 8
Canadian cents to yield 1.174 percent.
Canadian gross domestic product data for the fourth quarter
is awaited on Tuesday.

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