CANADA FX DEBT-C$ weakens as oil holds around its lowest in a month

Published 2016-04-04, 09:39 a/m
© Reuters.  CANADA FX DEBT-C$ weakens as oil holds around its lowest in a month
USD/CAD
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CA2YT=RR
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CA10YT=RR
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* Canadian dollar at C$1.3033, or 76.73 U.S. cents
* Bond prices mixed across the maturity curve

TORONTO, April 4 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Monday as oil held around its
lowest in a month, although the currency traded in a narrow
range as the market braced for trade and employment data later
in the week.
The currency has consolidated recent strength since touching
a 5-1/2-month high at C$1.2859 on Thursday, when stronger than
expected economic growth in January further dented expectations
for a Bank of Canada rate cut.
Oil prices dipped as investors ditched some of their bullish
bets on another price rise and the chances that top exporters
will agree to rein in overproduction appeared to fade.

February trade data is awaited on Tuesday, with economists
watching for further strength in the export sector. The March
unemployment report is due at the end of the week. ECONCA
At 9:28 a.m. EDT (1328 GMT), the Canadian dollar CAD=D4
was trading at C$1.3033 to the greenback, or 76.73 U.S. cents,
slightly weaker than Friday's close of C$1.3014, or 76.84 U.S.
cents.
The currency's strongest level of the session was C$1.3020,
while its weakest was C$1.3082.
Speculators further cut bearish bets on the Canadian dollar
from extreme levels seen in January, Commodity Futures Trading
Commision (CFTC) data showed on Friday.
Net short Canadian dollar positions fell to 6,180 contracts
in the week ended March 29 from 15,009 in the prior week.

Bank of Canada Governor Stephen Poloz and Deputy Governor
Carolyn Wilkins will speak to elementary students at 10 a.m. EDT
(1400 GMT) about the public consultations to choose a woman to
appear on a bank note. The event will be webcast live on the
Bank of Canada's website, but remarks will not be published and
analysts are not expecting current policy to be addressed.
Canadian government bond prices were mixed across the
maturity curve, with the two-year CA2YT=RR price down 0.5
Canadian cent to yield 0.547 percent and the benchmark 10-year
CA10YT=RR rising 5 Canadian cents to yield 1.233 percent.
The Canada-U.S. two-year bond spread narrowed 2.3 basis
points to -19.7 basis points, while the 10-year spread narrowed
1.6 basis points to -53.6 basis points. The 10-year spread
traded at its least negative since Oct. 20 as U.S. Treasuries
outperformed following dovish comments last week from Federal
Reserve Chair Janet Yellen.
The Canadian province of Saskatchewan, holds an election.
The right-leaning Saskatchewan Party is expected to stay in
power.

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