CANADA FX DEBT-C$ strengthens against weaker greenback as oil rallies

Published 2017-11-22, 09:54 a/m
© Reuters.  CANADA FX DEBT-C$ strengthens against weaker greenback as oil rallies
USD/CAD
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CL
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CA2YT=RR
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CA10YT=RR
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USDIDX
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* Canadian dollar at C$1.2747, or 78.45 U.S. cents

* U.S. crude oil reaches $58 for first time since July 2015

* Bond prices mixed across a flatter yield curve

TORONTO, Nov 22 (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Wednesday as oil prices climbed and weaker-than-expected U.S. durable goods orders weighed on the greenback.

The price of U.S. crude oil CLc1 reached $58 a barrel for the first time since July 2015 as a major pipeline cut Canadian crude flows to the United States. is one of Canada's major exports.

The U.S. dollar .DXY fell against a basket of major currencies after data showed new orders for U.S.-made capital goods unexpectedly fell in October. 9:34 a.m. ET (1434 GMT), the Canadian dollar CAD=D4 was trading at C$1.2747 to the greenback, or 78.45 U.S. cents, up 0.3 percent.

The currency traded in a narrow range of C$1.2739 to C$1.2788. On Tuesday, it touched a nearly three-week low at C$1.2837.

The loonie has been pressured recently by concern that an uncertain outlook for the North American Free Trade Agreement will stall Bank of Canada interest rate hikes.

The United States, Mexico and Canada failed to resolve any major differences in a fifth round of talks to rework the NAFTA trade deal, drawing a swift complaint from the Trump administration on Tuesday that the lack of progress could spell doom. government bond prices were mixed across a flatter yield curve, with the two-year CA2YT=RR down 0.5 Canadian cent to yield 1.465 percent and the 10-year CA10YT=RR rising 2 Canadian cents to yield 1.916 percent.

Canadian retail sales data for September is due on Thursday.

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