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CANADA FX DEBT-Canadian dollar slides as oil prices fall

Published 2015-08-31, 09:45 a/m
CANADA FX DEBT-Canadian dollar slides as oil prices fall
LCO
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CL
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CA2YT=RR
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CA10YT=RR
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* Bond prices rise across the maturity curve

TORONTO, Aug 31 (Reuters) - The Canadian dollar weakened
against the U.S. dollar on Monday as volatile crude prices
retreated and as investors positioned for month-end trading and
ahead of a busy week for economic data.
Oil prices slid after staging their biggest two-day rally in
six years last week, on renewed worries over excess supply and
China's slowing economy.
After a quiet period on the economic data front, investors
are turning their attentions to this week's Canadian data
including second quarter growth data on Tuesday, trade balance
figures for July on Thursday, and job numbers for August from
both sides of the border on Friday.

* At 9:30 a.m. EDT (1330 GMT), the Canadian dollar CAD=D4
was trading at C$1.3291 to the greenback, or 75.24 U.S. cents,
softer than the Bank of Canada's official close of C$1.3215, or
75.67 U.S. cents on Friday.
* The currency's strongest level of the session was C$1.32,
while its weakest level was C$1.3303.
* On the data front, Canada's current account deficit
narrowed slightly in the second quarter of 2015 to C$17.40
billion, but was greater than the C$16.90 billion shortfall
predicted by analysts.
* U.S. crude CLc1 prices were down 0.91 percent to $44.81,
while Brent crude LCOc1 lost 1.72 percent to $49.19. O/R
* Canadian government bond prices were higher across the
maturity curve, with the two-year CA2YT=RR price up 1.5
Canadian cents to yield 0.409 percent and the benchmark 10-year
CA10YT=RR rising 29 Canadian cents to yield 1.411 percent.
* The Canada-U.S. two-year bond spread narrowed to -30.5
basis points, while the 10-year spread narrowed to -73.3 basis
points.

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