CANADA FX DEBT-C$ nearly flat as stocks stabilize; investors eye Poloz speech

Published 2018-06-26, 10:00 a/m
© Reuters.  CANADA FX DEBT-C$ nearly flat as stocks stabilize; investors eye Poloz speech
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$1.3293, or 75.23 U.S. cents

* Price of U.S. oil rises 0.5 percent

* Bond prices lower across a flatter yield curve

* Canada-U.S. 10-year spread hits widest in more than a year

TORONTO, June 26 (Reuters) - The Canadian dollar steadied against its U.S. counterpart on Tuesday as equity markets grew calmer after they had been buffeted on Monday by rising trade tensions, and investors braced for an upcoming speech by Canada's central bank governor.

Bank of Canada Governor Stephen Poloz will give a speech and press conference on Wednesday in Victoria, British Columbia. Markets will be watching for any hints as to whether the central bank will raise interest rates at its upcoming meeting in July.

Modest gains from Europe's main bourses relieved nervy investors, after the latest escalation in an increasingly global trade storm pummeled Wall Street and sent Chinese stocks into 'bear' market territory. exports many commodities and runs a current account deficit so its economy could be hurt if the flow of trade or capital slows.

At 9:26 a.m. EDT (1326 GMT), the Canadian dollar CAD=D4 was trading near flat at C$1.3293 to the greenback, or 75.23 U.S. cents.

The currency traded in a range between C$1.3281 and C$1.3329. On Friday, it touched its weakest level in a year at C$1.3384.

Canada could lose as much as 10 percent of its oil supply in July after a power outage last week shut the Syncrude facility in Alberta, which can produce up to 360,000 barrels per day. price of oil was supported by Canadian production losses and uncertainty over Libyan exports. U.S. crude CLc1 prices were up 0.5 percent at $68.45 a barrel. government bond prices were lower across a flatter yield curve, with the two-year CA2YT=RR down 4.5 Canadian cents to yield 1.799 percent and the 10-year CA10YT=RR falling 3 Canadian cents to yield 2.099 percent.

Canada's 10-year yield fell 0.7 basis points further below its U.S. equivalent to a spread of -78.7 basis points, its widest gap since June 1, 2017.

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