CANADA FX DEBT-C$ seesaws a day after disappointing trade data, as oil rallies

Published 2016-04-06, 09:59 a/m
© Reuters.  CANADA FX DEBT-C$ seesaws a day after disappointing trade data, as oil rallies
USD/CAD
-
CL
-
CA2YT=RR
-
CA10YT=RR
-

* Canadian dollar at C$1.3153, or 76.03 U.S. cents
* Bond prices lower across the maturity curve

TORONTO, April 6 (Reuters) - The Canadian dollar seesawed
against its U.S. counterpart on Wednesday as oil prices rose,
with the currency trading in a narrow range a day after
disappointing trade data dented optimism about the economy's
strength at the start of 2016.
Crude oil futures rose as hopes for an agreement among
exporters to freeze output underpinned the market. U.S. crude
CLc1 prices were up 2.54 percent at $36.80 a barrel. O/R
Data on Tuesday showed Canadian exports slumped in February
by the most in nearly seven years, raising doubt among some
analysts about the rebalancing of Canada's economy towards
non-energy exports.
That concern may be echoed by the Bank of Canada at its
April 13 interest rate announcement.
At 9:51 a.m. EDT (1351 GMT), the Canadian dollar CAD=D4
was trading at C$1.3153 to the greenback, or 76.03 U.S. cents,
slightly stronger than Tuesday's close of C$1.3157, or 76.01
U.S. cents.
The currency's strongest level of the session was C$1.3124,
while its weakest level was C$1.3187.
The currency has pulled back 2.2 percent since reaching its
strongest in 5-1/2 months at C$1.2859 last week. It touched on
Tuesday its weakest in more than a week at C$1.3219.
Canadian government bond prices were lower across the
maturity curve in sympathy with Treasuries as oil prices rose
and after activity in China's service sector strengthened in
March.
The two-year CA2YT=RR price fell 1.5 Canadian cents to
yield 0.528 percent and the benchmark 10-year CA10YT=RR was
down 19 Canadian cents to yield 1.188 percent.
The 10-year yield touched on Tuesday its lowest in five
weeks at 1.157 percent.
The Ivey Purchasing Managers Index is due at 10 a.m. EDT (14
GMT). It is expected to show the pace of purchasing activity in
Canada picked up in March after slowing sharply the month
before.

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.