Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

CANADA FX DEBT-C$ nears 4-month low on oil price fall, pipeline setback

Published 2018-11-09, 04:19 p/m
Updated 2018-11-09, 04:20 p/m
© Reuters.  CANADA FX DEBT-C$ nears 4-month low on oil price fall, pipeline setback

© Reuters. CANADA FX DEBT-C$ nears 4-month low on oil price fall, pipeline setback

* Canadian dollar falls 0.4 percent against the greenback

* Price of U.S. oil drops for 10th straight day

* Loonie touches its weakest since July 20 at 1.3233

* Canadian bond prices rise across a flatter yield curve

By Fergal Smith

TORONTO, Nov 9 (Reuters) - The Canadian dollar weakened to a nearly four-month low against the greenback on Friday as oil prices extended recent declines and a court ruling threatened to delay construction of a pipeline carrying heavy crude from Canada to the United States.

The price of oil, one of Canada's major exports, fell for the 10th straight day, the longest losing streak since July 1984, as global supply increased and investors worried that oil demand growth could slow. crude oil futures CLc1 settled 0.8 percent lower at $60.19 a barrel.

"The drop in oil is a kick in the teeth for the Canadian dollar," said Adam Button, chief currency analyst at ForexLive. "The Canadian dollar was able to withstand the pain in oil for most of the last month but oil is down 22 percent now."

A U.S. judge in Montana late on Thursday halted construction of the Keystone XL pipeline, throwing another obstacle in the path of the project that has been in development for a decade. Keystone ruling can seriously derail the expected recovery next year in Canadian oil," Button said.

Still, speculators have cut bearish bets on the Canadian dollar to the lowest since March, data from the U.S. Commodity Futures Trading Commission and Reuters calculations showed. As of Nov. 6, net short positions had decreased to 2,632 contracts from 9,655 a week earlier.

At 4:02 p.m. (2102 GMT), the Canadian dollar CAD=D4 was trading 0.4 percent lower at 1.3205 to the greenback, or 75.73 U.S. cents. The currency touched its weakest level since July 20 at 1.3233.

For the week, the loonie was down 0.7 percent.

The loonie fell on Friday as weak Chinese data raised concerns about global growth, pressuring stocks on Wall Street. runs a current account deficit, so its economy could be hurt if the flow of trade or capital slows.

The U.S. dollar rose toward a 16-month high against the euro as falling equity prices spurred a flight to quality and the U.S. Federal Reserve reaffirmed its monetary tightening stance. government bond prices were higher across a flatter yield curve in sympathy with U.S. Treasuries. The 10-year CA10YT=RR rose 25.5 Canadian cents to yield 2.507 percent.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.