CANADA FX DEBT-C$ near flat vs firmer greenback as oil prices climb

Published 2018-03-20, 09:29 a/m
© Reuters.  CANADA FX DEBT-C$ near flat vs firmer greenback as oil prices climb
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$1.3076, or 76.48 U.S. cents

* Oil prices gain 1.9 percent

* Canadian wholesale trade rises 0.1 percent in January

* Bond prices lower across the yield curve

TORONTO, March 20 (Reuters) - The Canadian dollar steadied against its broadly stronger U.S. counterpart on Tuesday as oil prices rose and domestic data showed an increase in wholesale trade, while investors braced for a potential Federal Reserve interest rate hike on Wednesday.

Canadian wholesale trade edged up 0.1 percent in January as higher sales in the food and machinery and equipment sectors offset declines in the building material and vehicle industries, data from Statistics Canada showed. Analysts had forecast no change in wholesale trade. price of oil, one of Canada's major exports, rose on tension in the Middle East and the possibility of further falls in Venezuelan output. crude CLc1 prices were up 1.9 percent at $63.23 a barrel.

The U.S. dollar .DXY climbed against a basket of major currencies, boosted by expectations of a more confident sounding Fed. Meanwhile, a sharp drop in a confidence survey among German investors weighed on the euro.

At 9:09 a.m. EST (1309 GMT), the Canadian dollar CAD=D4 was little changed at C$1.3076 to the greenback, or 76.48 U.S. cents.

The currency traded in a range of C$1.3053 to C$1.3087. On Monday, it touched its weakest intraday since June 28 at C$1.3124.

Bank of Canada Senior Deputy Governor Carolyn Wilkins will deliver a speech on Thursday, while domestic inflation data for February is due on Friday.

Canadian government bond prices were lower across the yield curve in sympathy with U.S. Treasuries. The two-year CA2YT=RR fell 3.5 Canadian cents to yield 1.803 percent and the 10-year CA10YT=RR declined 9 Canadian cents to yield 2.179 percent.

The gap between the 10-year yield and its U.S. equivalent widened by 2.3 basis points to a spread of -70.0 basis points.

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