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CANADA FX DEBT-C$ firms as oil prices climb; Poloz to speak midweek

Published 2017-09-25, 09:37 a/m
© Reuters.  CANADA FX DEBT-C$ firms as oil prices climb; Poloz to speak midweek
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* Canadian dollar at C$1.2316, or 81.20 U.S. cents

* Oil prices climb to 8-month high

* Bond prices mixed across the yield curve

* Bank of Canada Governor Poloz to speak on Wednesday

TORONTO, Sept 25 (Reuters) - The Canadian dollar edged higher on Monday against its broadly firmer U.S. counterpart as prices of oil, one of Canada's major exports rose, while investors awaited a speech by Bank of Canada Governor Stephen Poloz on Wednesday.

Oil prices rose to their highest in eight months after major producers said at a meeting in Vienna the global market was well on its way towards rebalancing. crude CLc1 prices were up 1.18 percent at $51.26 a barrel.

The U.S. dollar .DXY climbed against a basket of major currencies after a surge in support for the far right in German elections weighed on the euro. 9:19 a.m. ET (1319 GMT), the Canadian dollar CAD=D4 was trading at C$1.2316 to the greenback, or 81.20 U.S. cents, up 0.2 percent.

The currency traded in a range of C$1.2314 to C$1.2350.

The loonie fell 1.2 percent against the U.S. dollar last week after a Bank of Canada policymaker said the currency's strength would be a factor in future interest rate decisions.

All eyes are now on Poloz's speech on Wednesday, with the market expecting him to keep the dollar in check without opening himself to charges from global peers that he is manipulating the currency. currency has climbed 9 percent this year.

Speculators have meanwhile raised bullish bets on the loonie, data from the U.S. Commodity Futures Trading Commission and Reuters calculations showed on Friday.

As of Sept. 19, Canadian dollar net long positions had climbed to 58,846 contracts, the highest in six weeks, from 50,499 contracts a week earlier.

U.S. trade negotiators will only partially unveil new text on modifying a key chapter on investment under NAFTA, two well-placed sources said on Sunday, underlying the cautious pace of talks that are supposed to wrap up by the end of the year. government bond prices were mixed across the yield curve, with the two-year CA2YT=RR down 1 Canadian cent to yield 1.611 percent and the 10-year CA10YT=RR falling 4 Canadian cents to yield 2.117 percent.

The gap between Canada's 10-year yield and its U.S. equivalent narrowed by 1.5 basis points to a spread of -13.5 basis points.

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