CANADA FX DEBT-C$ makes gains one day after six-week low

Published 2015-11-17, 04:59 p/m
© Reuters.  CANADA FX DEBT-C$ makes gains one day after six-week low
USD/CAD
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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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(Adds strategist comment, updates prices)
* Canadian dollar settles at C$1.3308, or 75.14 U.S. cents
* Bond prices dip across the maturity curve

By Alastair Sharp
TORONTO, Nov 17 (Reuters) - The Canadian dollar firmed
against a broadly stronger U.S. dollar on Tuesday, recovering
from a six-week low hit on Monday even as crude oil prices fell.
The loonie, as the Canadian currency is colloquially known,
traded in a much tighter range than had been seen in the three
prior sessions, suggesting traders were taking a pause.
"We're grinding higher here, but it's not a straight line,"
said Shaun Osborne, chief currency strategist at Bank of Nova
Scotia. "It's not too surprising that we've seen a bit of
consolidation."
The Canadian dollar settled at C$1.3308 to the
greenback, or 75.14 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$1.3298,
while its weakest level was C$1.3345.
Crude oil, a major Canadian export, had rallied on Monday on
heightened geopolitical tensions following the Paris attacks but
traded lower on Tuesday as focus returned to global oversupply.
O/R
The U.S. Federal Reserve is scheduled to release the minutes
of its October monetary policy meeting on Wednesday, which
should shed light on the some of the changes in the U.S. central
bank's statement.
Against the euro, the Canadian dollar reached 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 Fed will raise
interest rates next month.
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.
The two-year CA2YT=RR price was down 1.5 Canadian cents to
yield 0.622 percent and the benchmark 10-year CA10YT=RR
slipped 8 Canadian cents to yield 1.658 percent.
U.S. crude CLc1 prices settled down 2.6 percent to $40.67,
while Brent crude LCOc1 lost 1.3 percent to $44.00.
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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