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CANADA FX DEBT-C$ pulls back from 10-day high ahead of Schembri speech

Published 2018-02-15, 09:30 a/m
Updated 2018-02-15, 09:40 a/m
© Reuters.  CANADA FX DEBT-C$ pulls back from 10-day high ahead of Schembri speech

* Canadian dollar at C$1.2508, or 79.95 U.S. cents

* Oil prices fall 0.7 percent

* Bond prices lower across the yield curve

* 5-year yield reaches its highest since September 2013

TORONTO, Feb 15 (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Thursday, pulling back from an earlier 10-day high as oil prices fell and ahead of a speech by Bank of Canada Deputy Governor Lawrence Schembri.

At 9:09 a.m. EST (1409 GMT), the Canadian dollar CAD=D4 was trading 0.1 percent lower at C$1.2508 to the greenback, or 79.95 U.S. cents, underperforming some other major currencies.

The loonie's weakest level of the session was C$1.2525, while it touched its strongest since Feb. 5 at C$1.2466.

Schembri will speak on the country's approach to inflation stability. Analysts will look for any update on the Bank of Canada's inflation outlook and what impact it could have on the path of monetary policy following three interest rate hikes since last July.

The central bank will release his prepared remarks at 13:30 p.m. EST (1830 GMT).

The price of oil, one of Canada's major exports, slipped as record U.S. production and rising inventories outweighed a weak U.S. dollar and Saudi Arabia's comments that major producers were committed to their pact on cutting supplies. crude CLc1 prices were down 0.7 percent at $60.18 a barrel.

The U.S. dollar .DXY fell against a basket of major currencies, hitting a 15-month low against the yen, as negative sentiment around the dollar outweighed a rise in 10-year U.S. Treasury yields to their highest levels in four years. government bond prices were lower across the yield curve in sympathy with U.S. Treasuries after U.S. data showed a stronger-than-expected rise in underlying producer prices. five-year CA5YT=RR dipped 4 Canadian cents to yield 2.162 percent and the 10-year CA10YT=RR declined 13 Canadian cents to yield 2.391 percent.

The 5-year yield posted its highest intraday since September 2013 at 2.173 percent.

Resales of Canadian homes dropped 14.5 percent in January from December to the lowest monthly level in three years as tighter mortgage rules doused demand, the Canadian Real Estate Association said. added 10,700 jobs in January, driven by hiring in construction and leisure and hospitality, according to a report from ADP.

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