Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

CANADA FX DEBT-C$ outperforms despite oil slump as Yellen speech in focus

ForexAug 24, 2017 16:50
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. CANADA FX DEBT-C$ outperforms despite oil slump as Yellen speech in focus

* Canadian dollar at C$1.2530 or 79.81 U.S. cents

* Bond prices lower across the maturity curve

By Solarina Ho

TORONTO, Aug 24 (Reuters) - The Canadian dollar clung to gains against the U.S. dollar on Thursday, outperforming key currency rivals even as oil prices fell and the greenback inched higher ahead of a meeting of global central bankers.

With little domestic news to steer direction until next week's quarterly gross domestic product report, investors are focused on the bankers' summit in Jackson Hole, Wyoming.

Speeches by Federal Reserve Chair Janet Yellen and European Central Bank chief Mario Draghi will be parsed for clues on monetary policy direction, even as significant new policy signals were seen as unlikely.

"The bar's been set fairly high there in terms of (Yellen) coming out and reaffirming that they have a policy to push ahead on raising interest rates," said Mark Chandler, head of Canadian fixed income and currency strategy at RBC Capital Markets.

"If she ends up disappointing that expectation there is a chance the (Canadian) currency could get a little bit stronger."

At 4:00 p.m. ET (2000 GMT), the Canadian dollar CAD=D4 was trading at C$1.2530 to the greenback, or 79.81 U.S. cents, up 0.2 percent.

It was also stronger against most major currencies, including the euro CADEUR=R , the Australian CADAUD=R and New Zealand dollars CADNZD=R and the British pound CADGBP=R .

The loonie, which traded between C$1.2519 and C$1.2561 during the session, has rallied nearly 7 percent this year, helped by a broadly weaker U.S. dollar and upbeat domestic economic data that prompted the Bank of Canada to raise interest rates for the first time in seven years last month. The central bank is expected to raise rates again this fall.

The currency's strength came even as the price of oil LCOc1 , a key Canadian export, settled down about 2 percent on demand concerns. U.S. Gulf Coast refineries shut operations as Hurricane Harvey was forecast to turn into a major hurricane. O/R

"The Canadian dollar and oil relationship has been looser than in the past - the correlation's been slipping," said Chandler.

Canadian government bond prices were lower across the maturity curve, with the two-year CA2YT=RR price down 1 Canadian cent to yield 1.266 percent and the benchmark 10-year CA10YT=RR falling 4 Canadian cents to yield 1.886 percent.

The Canada-U.S. two-year bond spread stood at -6.5 basis points, while the 10-year spread stood at -30.9 basis points.

CANADA FX DEBT-C$ outperforms despite oil slump as Yellen speech in focus
 

Related Articles

Dollar Up, Investors Await Latest U.S. Jobs Report
Dollar Up, Investors Await Latest U.S. Jobs Report By Investing.com - Dec 02, 2021

By Gina Lee Investing.com – The dollar was up on Friday morning in Asia, with markets adopting a broadly calmer tone. Investors now await the latest U.S. jobs report that includes...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email