CANADA FX DEBT-C$ firms as Fed weighs on greenback, data in view

Published 2016-07-28, 09:23 a/m
© Reuters.  CANADA FX DEBT-C$ firms as Fed weighs on greenback, data in view
USD/CAD
-
CL
-
CA2YT=RR
-
CA10YT=RR
-
USDIDX
-

* Canadian dollar at C$1.3165, or 75.96 U.S. cents

* Bond prices mostly lower across the maturity curve

OTTAWA, July 28 (Reuters) - The Canadian dollar firmed against the greenback on Thursday as its U.S. counterpart was under pressure after the Federal Reserve stopped short of signaling an imminent interest rate hike, while investors looked to domestic economic data at the end of the week.

* The U.S. central bank left interest rates unchanged on Wednesday and said the near-term risks to the U.S. economic outlook had diminished. While that opened the door to another rate hike, the Fed gave no firm indication it would do so at its next meeting in September. The U.S. dollar was off 0.5 percent against a basket of currencies. .DXY U.S. crude CLc1 prices were unchanged at $41.92 a barrel, not far from a three-month low on Wednesday, the day after data showed a surprising rise in crude inventories. O/R

* At 9:05 a.m. EDT (1305 GMT), the Canadian dollar CAD=D4 traded at C$1.3165 to the greenback, or 75.96 U.S. cents, stronger than the Bank of Canada's official close of C$1.3191, or 75.81 U.S. cents.

* The currency's strongest level of the session was C$1.3101, while its weakest was C$1.3187.

* Following a light week on the domestic economic calendar, investors were turning their attention to monthly gross domestic product data due on Friday. Economic growth is expected to have declined 0.4 percent in May as the economy was hurt by disruptions caused by wildfires in Alberta.

* Canadian government bond prices were mostly lower across the maturity curve, with the two-year CA2YT=RR price down 0.5 Canadian cent to yield 0.581 percent and the benchmark 10-year CA10YT=RR falling 10 Canadian cents to yield 1.087 percent.

* The Canada-U.S. two-year bond spread was -14.9 basis points, while the 10-year spread was -44.0 basis points.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.