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CANADA FX DEBT-C$ strengthens ahead of Wednesday Bank of Canada rate call

Published 2015-09-08, 09:17 a/m
CANADA FX DEBT-C$ strengthens ahead of Wednesday Bank of Canada rate call
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$1.3225, or 75.61 U.S. cents
* Bond prices lower across the maturity curve

TORONTO, Sept 8 (Reuters) - The Canadian dollar strengthened
against its U.S. counterpart on Tuesday, boosted by a rising
price for Brent crude and ahead of Wednesday's Bank of Canada
interest rate decision.
The central bank is expected to hold rates steady until
2017, although a quarter of economists polled by Reuters last
week said the bank could cut for a third time this year.
CA/POLL
* At 8:59AM ET (1259 GMT), the Canadian dollar CAD=D4 was
trading at C$1.3225 to the greenback, or 75.61 U.S. cents,
stronger than Bank of Canada's official close on Friday of
C$1.3265, or 75.39 U.S. cents.
* Trading was limited on Monday by public holidays in both
Canada and the United States, but closed at C$1.3306 according
to Thomson Reuters data.
* U.S. crude CLc1 prices were down 1.1 percent to $45.54,
while Brent crude LCOc1 added 2.6 percent to $48.87. O/R
* The Canadian dollar, which was also outperforming the
euro, the yen, and the Swiss franc, is expected to trade between
C$1.3190 and C$1.3280 against the U.S. dollar on Tuesday,
according to RBC Capital Markets analyst George Davis.
* Canadian government bond prices were lower across the
maturity curve, with the two-year CA2YT=RR price down 4
Canadian cents to yield 0.463 percent and the benchmark 10-year
CA10YT=RR falling 44 Canadian cents to yield 1.486 percent.
* The Canada-U.S. two-year bond spread was -27 basis points,
while the 10-year spread was -70.3 basis points.

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