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CANADA FX DEBT-C$ slips as markets await Fed minutes

Published 2015-08-19, 09:57 a/m
CANADA FX DEBT-C$ slips as markets await Fed minutes
CA2YT=RR
-
CA10YT=RR
-

* Canadian dollar at C$1.3080 or 76.45 U.S. cents
* Bond prices mixed across the maturity curve

TORONTO, Aug 19 (Reuters) - The Canadian dollar retreated
against the U.S. dollar on Wednesday, as investors, looking for
clues on when the Federal Reserve will likely resume hiking
interest rates, awaited the release of the July meeting minutes.
The U.S. central bank is widely expected to raise rates by
the end of the year, possibly as early as next month. This would
be the first hike in nearly a decade, but some wonder if worries
about a slowdown in China and the latest slump in commodity
prices, which could drag on inflation, could push the timing
further out.
The price of crude, a significant Canadian export, also
fell, adding further pressure on the currency, though the
commodity was off recent lows. O/R

* At 9:50 a.m. EDT (1350 GMT), the Canadian dollar CAD=D4
was trading at C$1.3080 to the greenback, or 76.45 U.S. cents,
weaker than the Bank of Canada's official close of C$1.3056, or
76.59 U.S. cents.
* The Canadian dollar was trading between C$1.3024 and
C$1.3096 so far on Wednesday.
* U.S. consumer prices rose slightly in July, but an
increase in the cost of shelter suggested inflation was probably
stabilizing enough to support expectations the Federal Reserve
will raise interest rates this year. ID:nL1N10U0KX
* The minutes from the Federal Open Markets Commission
(FOMC) are due at 2 p.m. EDT.
* Canadian government bond prices were mixed across the
maturity curve, with the longer term bonds falling. The two-year
CA2YT=RR price was off 0.5 Canadian cent to yield 0.418
percent and the benchmark 10-year CA10YT=RR slid 10 Canadian
cents to yield 1.407 percent.
* The Canada-U.S. two-year bond spread widened to -31.2
basis points, while the 10-year spread widened to -81.0 basis
points.

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