CANADA FX DEBT-C$ firms as markets stabilize after Brexit-related volatility

Published 2016-06-28, 09:28 a/m
© Reuters.  CANADA FX DEBT-C$ firms as markets stabilize after Brexit-related volatility
USD/CAD
-
CL
-
CA2YT=RR
-
CA10YT=RR
-

* Canadian dollar at C$1.3054, or 76.60 U.S. cents
* Bond prices slightly lower across the maturity curve

TORONTO, June 28 (Reuters) - The Canadian dollar
strengthened slightly against the greenback on Tuesday as
stabilization in global financial markets after volatility
triggered by Britain's vote to leave the European Union helped
support Canada's risk-sensitive currency.
Gains for the loonie came after it hit a three-week low on
Monday at C$1.3120 as Brexit-related shockwaves filtered through
global financial markets.
Global stocks rose as bargain hunting trumped still
widespread uncertainty over Brexit and oil prices rallied as
investors took advantage of a two-day slide. U.S. crude CLc1
prices were up 2.65 percent at $47.56 a barrel.
O/R
At 9:13 a.m. EDT (1313 GMT), the Canadian dollar CAD=D4
was trading at C$1.3054 to the greenback, or 76.60 U.S. cents,
slightly stronger than Monday's close of C$1.3073, or 76.49 U.S.
cents.
The currency's strongest level of the session was C$1.2967,
while its weakest was C$1.3086.
Canada's commodity-linked economy will suffer weaker growth
because of Britain's vote to leave the EU, which has put the
prospect of Canadian interest rate cuts back on the table.

Overnight index swaps implied a nearly one-third chance of a
Bank of Canada rate cut this year after having been priced for
no change in policy before Brexit. BOCWATCH
Canadian government bond prices were slightly lower across
the maturity curve as the rally in safe-haven assets paused.
The two-year CA2YT=RR price dipped 2 Canadian cents to
yield 0.499 percent and the benchmark 10-year CA10YT=RR fell 5
Canadian cents to yield 1.084 percent.
On Monday, the 10-year yield hit its lowest in 11 days at
1.077 percent.
Canada's gross domestic product data for April is awaited on
Thursday. Economic growth is expected to have edged up 0.1
percent following two months of declines. Even so, the gain is
unlikely to change expectations from analysts and policymakers
that second-quarter growth will be flat at best due to the
impact of massive wildfires in oil-producing Alberta. ECONCA

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.