CANADA FX DEBT-C$ weakens ahead of business outlook survey

Published 2017-04-03, 09:45 a/m
© Reuters.  CANADA FX DEBT-C$ weakens ahead of business outlook survey
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* Canadian dollar at C$1.3372, or 74.78 U.S. cents

* Loonie touches its weakest since March 29 at C$1.3378

* Bond prices mixed across the yield curve

TORONTO, April 3 (Reuters) - The Canadian dollar weakened against its U.S. counterpart on Monday, surrendering most of last week's gains ahead of the release of a business outlook survey by the country's central bank.

At 9:24 a.m. EDT (1324 GMT), the Canadian dollar CAD=D4 traded at C$1.3372 to the greenback, or 74.78 U.S. cents, weaker than Friday's close of C$1.3299, or 75.19 U.S. cents.

The currency's strongest level of the session was C$1.3295, while it touched its weakest since March 29 at C$1.3378.

The loonie rose 0.6 percent last week as data showing robust domestic growth in January raised prospects of an earlier-than-expected Bank of Canada interest rate hike. The currency finished the first quarter with a 1 percent gain after rising more than 3 percent in 2016.

Still, Bank of Canada Governor Stephen Poloz reiterated the bank's dovish take on Canada's fourth-quarter economic growth in an interview published on Friday. 10:30 EDT (1430 GMT), the central bank will release its business outlook report, which surveys about 100 companies for their expectations on sales, hiring and other factors influencing business decisions.

The Bank of Canada's next interest rate decision and Monetary Policy Report are due on April 12.

The U.S. dollar .DXY gained 0.2 percent against a basket of major currencies as markets eyed the U.S. nonfarm payrolls report due on Friday for clues on the likely pace of interest rate rises from the U.S. Federal Reserve. crude CLc1 prices dipped 0.1 percent to $50.55 a barrel as upbeat economic data from Asia pointed to strong energy demand from the region, offsetting a rebound in Libyan oil production. is one of Canada's major exports.

Canadian government bond prices were mixed across the yield curve, with the two-year CA2YT=RR flat to yield 0.749 percent and the 10-year CA10YT=RR rising 10 Canadian cents to yield 1.612 percent.

Canada's trade report for February is due on Tuesday, while the country's employment report for March is due on Friday.

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