CANADA FX DEBT-C$ dips vs stronger greenback as Italy adds to trade uncertainty

Published 2018-06-14, 09:36 a/m
© Reuters.  CANADA FX DEBT-C$ dips vs stronger greenback as Italy adds to trade uncertainty
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$1.3004, or 76.90 U.S. cents

* Price of U.S. oil rises 0.7 percent

* Bond prices higher across a flatter yield curve

TORONTO, June 14 (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Thursday as the greenback broadly climbed and after Italy added to Canada's uncertain trade outlook, saying it will not ratify the European Union's free trade accord with the country.

The free trade agreement with Canada does not ensure sufficient protection for Italy's specialty foods, new Agriculture Minister Gian Marco Centinaio said in a newspaper interview. is also contending with new U.S. tariffs on steel and aluminum imports as well as slow-moving talks to modernize the North American Free Trade Agreement.

The U.S. dollar .DXY rose against a basket of major currencies after a signal by the European Central Bank that it would keep interest rates at record lows through the summer of 2019 weighed on the euro. for the greenback came as U.S. data showing the strongest rise in retail sales in six months supported expectations that the Federal Reserve would raise interest rates further. 9:13 a.m. EST (1313 GMT), the Canadian dollar CAD=D4 traded 0.1 percent lower at C$1.3004 to the greenback, or 76.90 U.S. cents. The currency traded in a range of C$1.2950 to C$1.3012.

On Wednesday, the loonie touched its weakest in more than one week at C$1.3052.

The ratio of debt to disposable income, a measure closely watched by policymakers, slipped in the first quarter to a two-year low of 168.0 percent from 169.7 percent in the fourth quarter as disposable income grew, Statistics Canada said. price of oil, one of Canada's major exports, rose despite evidence of rising U.S. output and uncertainty over the outlook for supply before a meeting next week of the world's largest exporters. crude CLc1 prices were up 0.7 percent at $67.11 a barrel.

Canadian government bond prices were higher across a flatter yield curve in sympathy with U.S. Treasuries and German Bunds. The two-year CA2YT=RR rose 2 Canadian cents to yield 1.927 percent and the 10-year CA10YT=RR climbed 24 Canadian cents to yield 2.290 percent.

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