CANADA FX DEBT-C$ holds on to this week's gains after robust U.S. data

Published 2018-07-27, 09:25 a/m
© Reuters.  CANADA FX DEBT-C$ holds on to this week's gains after robust U.S. data
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* Canadian dollar at C$1.3059, or 76.58 U.S. cents

* Loonie is on track to rise 0.7 percent for the week

* Bond prices mixed across the yield curve

TORONTO, July 27 (Reuters) - The Canadian dollar was little changed against its U.S. counterpart on Friday as the loonie held on to this week's gains even after data showed the U.S. economy expanded at its fastest clip in nearly four years.

At 9:10 a.m. EDT (1310 GMT), the Canadian dollar CAD=D4 was trading 0.1 percent higher at C$1.3059 to the greenback, or 76.58 U.S. cents.

The currency, which on Wednesday touched its highest level in nearly six weeks at C$1.3025, traded in a narrow range of C$1.3041 to C$1.3080.

For the week, the loonie is on track to rise 0.7 percent. It has been boosted by stronger-than-expected domestic data and easing of trans-Atlantic trade tensions.

Canada runs a current account deficit, so its economy could be hurt if the flow of trade or capital slows.

The country is in talks with Mexico and the United States to revamp the North American Free Trade Agreement (NAFTA). Mexico and the United States agreed on Thursday to step up talks in hopes of reaching an agreement on major issues by August, Mexican Economy Secretary Ildefonso Guajardo said. U.S. dollar .DXY was little changed against a basket of currencies as the robust U.S. economic data did not quell worries the pace of growth would slow due to tariffs. price of oil, one of Canada's major exports, dipped but was set for a weekly gain thanks to Saudi Arabia halting crude transport through a key shipping lane. U.S. crude CLc1 prices were down 0.1 percent at $69.51 a barrel. government bond prices were mixed across the yield curve, with the two-year CA2YT=RR flat to yield 2.056 percent and the 10-year CA10YT=RR rising 11 Canadian cents to yield 2.279 percent.

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