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Canadian dollar edges higher ahead of Bank of Canada business survey

Published 2019-04-15, 09:59 a/m
© Reuters.  Canadian dollar edges higher ahead of Bank of Canada business survey
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* Canadian dollar rises 0.1% against the greenback

* Canadian home sales increase 0.9% month-over-month in March

* Price of U.S. oil falls 0.7%

* 10-year yield reaches near six-week high

TORONTO, April 15 (Reuters) - The Canadian dollar rose against its U.S. counterpart on Monday as the rally in global stock markets offset a decline in oil prices, but the currency's gains were restrained ahead of a business survey from the Bank of Canada.

Stocks rose after progress in the U.S.-China trade talks buoyed sentiment and investors grew somewhat optimistic about the next batch of corporate earnings. is a major exporter of commodities, including oil, so its currency tends to benefit from the positive signal higher stock prices send about the outlook for the global economy.

The price of oil, one of Canada's major exports, has rallied about 50% since December. But its recent rally was halted on Monday after signals that Russia may exit production cuts. U.S. crude CLc1 prices were down 0.7% at $63.44 a barrel. 9:36 a.m. (1336 GMT), the Canadian dollar CAD=D4 was trading 0.1% higher at 1.3309 to the greenback, or 75.14 U.S. cents. The currency, which rose 0.5% last week, traded in a range of 1.3298 to 1.3350.

The Bank of Canada will release the spring issue of the Business Outlook Survey at 10:30 a.m. (1430 GMT), which could help guide expectations for the central bank's interest rate decision on April 24.

Data from the U.S. Commodity Futures Trading Commission and Reuters calculations showed on Friday that speculators have cut their bearish bets on the Canadian dollar. As of April 9, net short positions had dipped to 43,202 contracts from 44,323 in the prior week.

Canadian home sales rose 0.9% month-over-month in March, edging higher after a sharp drop in the previous month, the Canadian Real Estate Association said on Monday. government bond prices were lower across the yield curve, with the two-year CA2YT=RR down 3 Canadian cents to yield 1.651% and the 10-year CA10YT=RR falling 12 Canadian cents to yield 1.797%.

The 10-year yield touched its highest intraday level since March 7 at 1.807%.

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