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$ slides vs firmer greenback after factory data disappoints

Published 2017-12-15, 04:46 p/m
Updated 2017-12-15, 04:50 p/m
© Reuters.  CANADA FX DEBT-C$ slides vs firmer greenback after factory data disappoints

© Reuters. CANADA FX DEBT-C$ slides vs firmer greenback after factory data disappoints

(Adds analyst quotes and details throughout; updates prices)

* Canadian dollar at C$1.2878, or 77.65 U.S. cents

* Canadian manufacturing sales fall 0.4 percent in October

* U.S. crude prices advance 0.5 percent

* Bond prices mixed across a flatter yield curve

By Fergal Smith

TORONTO, Dec 15 (Reuters) - The Canadian dollar weakened against its U.S. counterpart on Friday after domestic data showed a surprise drop in factory sales, while the greenback climbed broadly on prospects of a U.S. tax overhaul.

Manufacturing sales fell 0.4 percent in October, pulled down by weak sales of autos and other transportation equipment. Analysts had forecast a 0.8 percent increase. U.S. dollar .DXY rose 0.5 percent against a basket of major currencies on optimism a tax bill would be passed by year-end. loonie got a boost on Thursday after Bank of Canada Governor Stephen Poloz said in a speech the central bank was increasingly confident the economy will need less stimulus over time, although the currency gave up some gains after dovish remarks by Poloz in a subsequent interview. looking at the way the Bank of Canada communicates, it's not as clear, for instance, as the Fed," said Eric Viloria, currency strategist at Wells Fargo (NYSE:WFC). "That does contribute a bit more in the price swings in the Canadian dollar."

The Bank of Canada is leaving the door open to further interest rate hikes in early 2018, making it clear that a number of uncertainties that could derail the economy, such as NAFTA renegotiation, are a reason for caution but not inaction. 4 p.m. ET (2100 GMT), the Canadian dollar CAD=D4 was trading at C$1.2878 to the greenback, or 77.65 U.S. cents, down 0.6 percent.

The currency's strongest level of the session was C$1.2740, while it touched its weakest since Tuesday at C$1.2890.

For the week, the loonie dipped 0.2 percent.

The currency lost ground despite higher prices of oil, one of Canada's major exports.

U.S. crude prices CLc1 settled 0.5 percent higher at $57.30 a barrel, supported by a pipeline outage in the North Sea. have trimmed bullish bets on the Canadian dollar for eight of the last nine weeks, data from the U.S. Commodity Futures Trading Commission and Reuters calculations showed. As of Dec. 12, net long positions had slipped to 41,960 contracts from 42,466 a week earlier.

Canadian government bond prices were mixed across a flatter yield curve, with the two-year CA2YT=RR down 1.5 Canadian cents to yield 1.555 percent and the benchmark 10-year CA10YT=RR rising 17 Canadian cents to yield 1.834 percent.

The gap between Canada's 10-year yield and its U.S. equivalent widened by 2.4 basis points to a spread of -51.5 basis points.

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.