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CANADA FX DEBT-C$ edges lower as oil prices fall

Published 2017-03-23, 09:45 a/m
© Reuters.  CANADA FX DEBT-C$ edges lower as oil prices fall
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$1.3338, or 74.97 U.S. cents

* Bond prices higher across a flatter yield curve

TORONTO, March 23 (Reuters) - The Canadian dollar dipped against its U.S. counterpart on Thursday as oil prices fell but the loonie traded in a narrow range as investors awaited a vote on a U.S. healthcare replacement later in the day.

Prices of oil, one of Canada's major exports, hovered above four-month lows, with a recovery reined in by investor concerns that Organization of the Petroleum Exporting Countries-led supply cuts were not yet reducing record U.S. crude inventories. crude CLc1 prices were down 0.23 percent at $47.93 a barrel.

The vote on a Republican healthcare plan is seen as a litmus test of President Donald Trump's ability to negotiate with Congress and deliver on tax and spending promises. 9:28 a.m. EDT (1328 GMT), the Canadian dollar CAD=D4 traded at C$1.3338 to the greenback, or 74.97 U.S. cents, slightly weaker than Wednesday's close of C$1.3327, or 75.04 U.S. cents.

The currency traded in a range of C$1.3317 to C$1.3355.

On Wednesday, Canada's Liberal government unveiled a stay-the-course budget that targeted export growth and some measure of tax reform but did little to whittle away at deficits, even as it backed off from an explicit pledge to improve the debt outlook. government bond prices were higher across a flatter yield curve, with the two-year CA2YT=RR up 2 Canadian cents to yield 0.764 percent and the 10-year CA10YT=RR rising 21 Canadian cents to yield 1.657 percent.

Canada's inflation report for February is due on Friday. ECONCA

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