CANADA FX DEBT-C$ soft on oil pullback, makes 4-month high versus euro

Published 2015-11-25, 09:36 a/m
CANADA FX DEBT-C$ soft on oil pullback, makes 4-month high versus euro
LCO
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CL
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CA2YT=RR
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CA10YT=RR
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* Canadian dollar at C$1.3318 or 75.09 U.S. cents
* Bond prices mixed across the maturity curve

TORONTO, Nov 25 (Reuters) - The Canadian dollar edged lower
against the U.S. dollar on Wednesday, pressured by pullback in
crude oil and stronger-than -expected U.S. durable goods data,
but pushed to a fresh four-month high against the euro.
Crude oil traded lower as the focus shifted back to a deep
global supply glut, after having been driven higher on Tuesday
by raised geopolitical tensions.
U.S. crude CLc1 prices were down 1.49 percent to $42.23 a
barrel, while Brent crude LCOc1 lost 1.45 percent to
$45.45.
U.S. durable goods rose more than anticipated in October and
jobless claims fell, but that was offset by tepid consumer
spending for October.
At 9:23 a.m. EST (1423 GMT), the Canadian dollar CAD=D4
was trading at C$1.3318 to the greenback, or 75.09 U.S, slightly
weaker than Tuesday's official close of C$1.3309, or 75.14 U.S.
cents, but having rebounded from a seven-week low on Monday at
1.3436.
The currency's strongest level of the session was C$1.3280,
while its weakest level was C$1.3337.
Against the euro, the Canadian dollar strengthened to
C$1.4095, having made a fresh four-month high at C$1.4067.
Weighing on the euro, Reuters reported that Euro zone
central bank officials are considering options such as whether
to stagger charges on banks hoarding cash or to buy more debt
ahead of the next European Central Bank meeting.
Canada's economy is rebounding following a modest
contraction in the first half of the year, boosted by non-energy
exports and investment, which will help growth reach 2-1/2
percent in 2017, Bank of Canada Deputy Governor Lynn Patterson
said on Tuesday.
Canadian government bond prices were mixed across the
maturity curve, with the two-year CA2YT=RR price down 1
Canadian cent to yield 0.626 percent and the benchmark 10-year
CA10YT=RR rising 2 Canadian cents to yield 1.613 percent.
Canada-U.S. spreads were little changed, with the two-year
bond spread at -31.4 basis points, while the 10-year spread was
-62.9 basis points.
The Bank of Canada will conduct a C$1.4 billion 30-year
auction on behalf of the Government of Canada. The bidding
deadline is 12:00 p.m EST (1700 GMT).
On Thursday, Quebec Finance Minister Carlos Leitao will give
an economic update for the province, while October producer and
raw material price data is awaited on Friday.

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