CANADA FX DEBT-C$ firms ahead of potential clues to central bank rate hikes

Published 2018-08-24, 09:39 a/m
© Reuters.  CANADA FX DEBT-C$ firms ahead of potential clues to central bank rate hikes
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* Canadian dollar at C$1.3058, or 76.58 U.S. cents

* Price of U.S. oil rises 1.8 percent

* Bank of Canada's Poloz due to give interview to CNBC

* Bond prices lower across the yield curve

TORONTO, Aug 24 (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Friday, recovering from an earlier one-week low as oil prices rose and investors awaited potential clues on the outlook for monetary policies in the United States and Canada.

The U.S. dollar .DXY fell against a basket of major currencies ahead of a speech by U.S. Federal Reserve Chairman Jerome Powell at an economic symposium in Jackson Hole, Wyoming. Investors hope the talk will provide an indication of the central bank's plans for monetary tightening and reaction to recent criticism by U.S. President Donald Trump. could also get clues Friday on prospects for further interest rate increases from the Bank of Canada. Its governor, Stephen Poloz, is due to give an interview to CNBC television at about 4:15 p.m. EDT (2015 GMT).

The Canadian central bank hiked last month for the fourth time in a year to leave its benchmark interest rate at 1.50 percent. Money markets expect another hike by October. BOCWATCH

The price of oil, one of Canada's major exports, was supported by signs that U.S. sanctions on Iran are already reducing global crude supply. U.S. crude CLc1 prices were up 1.8 percent at $69.01 a barrel. 9:18 a.m. EDT (1318 GMT), the Canadian dollar CAD=D4 traded 0.2 percent higher at C$1.3058 to the greenback, or 76.58 U.S. cents. The currency, which fell 0.6 percent on Thursday, touched its weakest since Aug. 17 at C$1.3102.

Canadian government bond prices were lower across the yield curve in sympathy with U.S. Treasuries. The two-year CA2YT=RR fell 2.5 Canadian cents to yield 2.138 percent and the 10-year CA10YT=RR declined 16 Canadian cents to yield 2.279 percent.

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