CANADA FX DEBT-C$ weakens against firmer greenback as oil falls

Published 2016-10-31, 09:48 a/m
© Reuters.  CANADA FX DEBT-C$ weakens against firmer greenback as oil falls
USD/CAD
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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$1.3400, or 74.63 U.S. cents

* Bond prices higher across the yield curve

TORONTO, Oct 31 (Reuters) - The Canadian dollar weakened against its U.S. counterpart on Monday as oil prices fell and the greenback made broader gains, but losses were restrained ahead of domestic gross domestic product data on Tuesday.

U.S. crude CLc1 was down 1.36 percent at $48.04 a barrel after producers that are not in the Organization of the Petroleum Exporting Countries made no specific commitment to join the group in limiting output levels to prop up prices. O/R

The U.S. dollar rebounded against a basket of major currencies after being pressured on Friday by news that the FBI was investigating emails linked to U.S presidential candidate Hillary Clinton's private computer server. for the greenback came as data showed a stronger-than-expected rise for consumer spending in September, which could bolster expectations of an interest rate hike from the Federal Reserve in December. 9:25 a.m. EDT (1325 GMT), the Canadian dollar CAD=D4 was trading at C$1.3400 to the greenback, or 74.63 U.S. cents, weaker than Friday's close of C$1.3384, or 74.72 U.S. cents.

The currency's strongest level of the session was C$1.3376, while its weakest was C$1.3431.

On Friday, the loonie touched its weakest since March 9 at C$1.3434.

The European Union and Canada signed a free trade agreement on Sunday that aims to generate jobs and economic growth, but it must still clear some 40 national and regional parliaments in Europe in the coming years to take full effect. trimmed bearish bets on the Canadian dollar, Commodity Futures Trading Commission data showed on Friday. Net short Canadian dollar positions dipped to 13,324 contracts in the week ended Oct. 25 from 14,298 in the prior week. government bond prices were higher across the yield curve, with the two-year CA2YT=RR up 2.5 Canadian cents to yield 0.555 percent and the benchmark 10-year CA10YT=RR rising 15 Canadian cents to yield 1.212 percent.

On Tuesday, data is expected to show that Canada's economy grew 0.2 percent in August. ECONCA

Also on Tuesday, the Canadian government will update its fiscal and economic position, providing new estimates for its budget deficit and for economic growth.

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