CANADA FX DEBT-C$ rallies on softer greenback, surging crude prices

Published 2015-10-01, 10:26 a/m
CANADA FX DEBT-C$ rallies on softer greenback, surging crude prices
USD/CAD
-
LCO
-
CL
-
CA2YT=RR
-
CA10YT=RR
-

* Canadian dollar at C$1.3225 or 75.61 U.S. cents
* Bond prices higher across the maturity curve

TORONTO, Oct 1 (Reuters) - The Canadian dollar rallied to
almost two-week highs on Thursday against a broadly weaker U.S.
dollar and U.S. crude prices that surged more than 4 percent.
Crude oil, a major Canadian export, jumped in part on
worries about potential damage to oil installations from a
hurricane headed for the U.S. East Coast. Plunging crude prices
have dragged the loonie down sharply over the last year and
remains a significant driver for the currency.
The U.S. dollar, which pulled back after data showed the
pace of growth in the U.S. manufacturing sector remained at or
near levels not seen since 2013, also helped the Canadian
dollar.

* At 10:15 a.m. EDT (1415 GMT), the Canadian dollar
was trading at C$1.3225 to the greenback, or 75.61 U.S. cents,
stronger than the Bank of Canada's official close of C$1.3345,
or 74.93 U.S. cents on Wednesday.
* The currency, which was outperforming nearly all of its
key currency counterparts, traded between C$1.3219 and C$1.3331
so far in the session.
* U.S. crude CLc1 prices were up 2.95 percent to $46.42,
while Brent crude LCOc1 added 1.92 percent to $49.3.
* Canadian government bond prices were higher across the
maturity curve, with the two-year CA2YT=RR price up 3.5
Canadian cents to yield 0.502 percent and the benchmark 10-year
CA10YT=RR rising 19 Canadian cents to yield 1.411 percent.
* The Canada-U.S. two-year bond spread was -14.3 basis
points, while the 10-year spread was -62.1 basis points.

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