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CANADA FX DEBT-C$ strengthens as U.S. Fed chief Powell stays the course

ForexAug 24, 2018 15:20
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© Reuters. CANADA FX DEBT-C$ strengthens as U.S. Fed chief Powell stays the course

* Canadian dollar at C$1.3031, or 76.74 U.S. cents

* U.S. oil prices rise 1.3 percent

* Bank of Canada's Poloz due to give interview to CNBC

* Canadian government bond prices dip across yield curve

By Fergal Smith

TORONTO, Aug 24 (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Friday, recovering from an earlier one-week low as oil prices rose and a speech by Federal Reserve Chairman Jerome Powell helped boost stocks and weaken the greenback.

Equity markets rose globally and the U.S. dollar .DXY fell against a basket of other major currencies after Powell outlined a steady, surprise-free course for monetary policy in a speech at the annual central bankers symposium in Jackson Hole, Wyoming. isn't a CAD specific move," said Brad Schruder, director of corporate sales and structuring at BMO Capital Markets. "The reaction today is really just an unwind of the bid to the (U.S.) dollar that we saw yesterday."

On Thursday, the loonie fell 0.6 percent as the greenback broadly climbed.

Investors could also get clues Friday on prospects for further interest rate increases from the Bank of Canada. Its governor, Stephen Poloz, is due to give an interview to CNBC television at about 4:15 p.m. EDT (2015 GMT). On Saturday, Poloz will participate in a panel discussion in Jackson Hole.

"The market is going to be looking for any kind of signal that a move from the Bank of Canada might happen sooner rather than later," Schruder said.

The Canadian central bank hiked interest rates last month for the fourth time in a year to leave its benchmark interest rate at 1.50 percent. Money markets expect another hike by October. BOCWATCH

At 2:46 p.m. (1846 GMT), the Canadian dollar CAD=D4 was trading 0.4 percent higher at C$1.3031 to the greenback, or 76.74 U.S. cents.

The currency touched its weakest intraday since Aug. 17 at C$1.3102. For the week, it was on track to rise 0.2 percent.

The price of oil CLc1 , one of Canada's major exports, settled 1.3 percent higher on signs that Iran sanctions may limit global supply and that the U.S.-Chinese trade dispute may not curb China's appetite for U.S. crude. has its own trade feud with the United States and is also in slow-moving talks to revamp the North American Free Trade Agreement.

U.S.-Mexico talks to craft a deal on new auto industry rules under NAFTA will continue into the weekend, Mexico's economy minister said on Friday.

Canadian government bond prices dipped across the yield curve. The 10-year CA10YT=RR declined 7 Canadian cents to yield 2.268 percent. The yield touched its highest intraday since Aug. 15 at 2.296 percent.

CANADA FX DEBT-C$ strengthens as U.S. Fed chief Powell stays the course
 

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