CANADA FX DEBT-C$ edges higher as crude oil trims losses

Published 2015-11-17, 09:20 a/m
CANADA FX DEBT-C$ edges higher as crude oil trims losses
HG
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LCO
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CL
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BBDb
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CA2YT=RR
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CA10YT=RR
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* Canadian dollar at C$1.3299 or 75.19 U.S. cents
* Bond prices dip across the maturity curve

By Fergal Smith
TORONTO, Nov 17 (Reuters) - The Canadian dollar firmed
against the U.S. dollar on Tuesday, further recovering from a
six-week low hit on Monday, as crude oil prices trimmed earlier
losses and U.S. inflation data met expectations.
Crude oil, which rallied on Monday on heightened
geopolitical tensions following the Paris attacks, still traded
lower on Tuesday as the focus returned to global oversupply.
The U.S. Labor Department said its Consumer Price Index
increased 0.2 percent in October, reversing September's 0.2
percent drop, while the so-called core CPI, which strips out
food and energy costs, gained 0.2 percent after a similar rise
the prior month.
At 8:43 a.m. ET (1343 GMT), the Canadian dollar was
trading at C$1.3299 to the greenback, or 75.19 U.S. cents,
stronger than the Bank of Canada's official close on Monday of
C$1.3325, or 75.05 U.S. cents.
The currency's strongest level of the session was C$1.3299,
while its weakest level was C$1.3345.
Against the euro, the Canadian dollar firmed to C$1.4285,
approaching its strongest level since July, after dovish remarks
from Peter Praet, a member of the European Central Bank's
Executive Board, weighed on the single currency.
Canadian government bond prices were lower across the
maturity curve, pressured by the rotation into stocks and U.S.
inflation data that supported the view that the Federal Reserve
will raise interest rates next month.
The two-year CA2YT=RR price was down 2 Canadian cents to
yield 0.625 percent and the benchmark 10-year CA10YT=RR fell
24 Canadian cents to yield 1.676 percent.
The Canada-U.S. two-year bond spread was -25.5 basis points,
1.8 basis points wider, as U.S. Treasuries underperformed at the
front and the belly of the curve, while the 10-year spread was
0.6 of a basis point narrower at -61.8 basis points.
U.S. crude CLc1 prices were down 0.38 percent to $41.58,
while Brent crude LCOc1 lost 0.36 percent to $44.40.
Copper prices plunged to their lowest in more than six years
as fears about demand growth in top consumer China and a higher
dollar fueled negative sentiment.
The Quebec government said on Monday that its $1 billion
investment in a partnership with Bombardier Inc BBDb.TO will
be financed through the government's annual borrowing program.

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