CANADA FX DEBT-C$ dips after Poloz inflation remarks; NAFTA deal prospects eyed

Published 2018-08-27, 09:55 a/m
© Reuters.  CANADA FX DEBT-C$ dips after Poloz inflation remarks; NAFTA deal prospects eyed
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$1.3035, or 76.72 U.S. cents

* BoC's Poloz plays down recent jump in inflation

* U.S. and Mexico close in on NAFTA trade pact deal

* Bond prices edge lower across a steeper yield curve

TORONTO, Aug 27 (Reuters) - The Canadian dollar dipped against its U.S. counterpart on Monday after Bank of Canada Governor Stephen Poloz played down the recent jump in inflation, while signs emerged that the United States and Mexico were nearing a NAFTA trade deal.

The rise in inflation to a nearly seven year high of 3 percent in July was due to transitory factors, Poloz said in an interview on Friday in Jackson Hole, Wyoming, where he was attending an economic symposium. notes for a panel discussion at the symposium on Saturday, Poloz said that taking a gradual, data-dependent approach to monetary policy can help manage risk to the inflation outlook in the face of economic uncertainties such as digital disruptions. and U.S. officials are close to a deal to resolving their bilateral issues in the renegotiation of the North American Free Trade Agreement (NAFTA) but a major issue must still be settled, a top Mexican official said on Monday. is also part of NAFTA, so its economy could benefit if resolution of issues between Mexico and the United States can bring a trilateral deal.

At 9:19 a.m. (1319 GMT), the Canadian dollar CAD=D4 traded 0.1 percent lower at C$1.3035 to the greenback, or 76.72 U.S. cents. The currency, which rose 0.3 percent last week, traded in a range of C$1.3008 to C$1.3067.

The price of oil, one of Canada's major exports, was little changed amid concerns the U.S.-China trade war will erode global economic growth, and ahead of a conference call later Monday of members of an OPEC and non-OPEC ministerial monitoring committee to discuss progress on their production curbs agreement. crude CLc1 prices were up 0.1 percent at $68.77 a barrel.

Canadian government bond prices were lower across a steeper yield curve in sympathy with U.S. Treasuries. The two-year CA2YT=RR dipped 1 Canadian cent to yield 2.126 percent and the 10-year CA10YT=RR declined 8 Canadian cents to yield 2.269 percent.

Canada's gross domestic product data for the second quarter is due on Thursday.

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