CANADA FX DEBT-Loonie rises with oil prices after Chinese factory data

Published 2018-03-14, 09:31 a/m
© Reuters.  CANADA FX DEBT-Loonie rises with oil prices after Chinese factory data
USD/CAD
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LCO
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CL
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CA2YT=RR
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CA10YT=RR
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* Canadian dollar at C$1.2926 or 77.36 U.S. cents

* Bond prices mixed across the maturity curve

March 14 (Reuters) - The Canadian dollar strengthened against the greenback on Wednesday, boosted by a rise in oil prices after strong Chinese factory activity lifted commodity markets.

At 9:14 a.m. EDT (1314 GMT), the Canadian dollar CAD=D4 was trading up 0.3 percent at C$1.2926 to the greenback, or 77.36 U.S. cents.

Data showed China's industrial output grew 7.2 percent in the first two months of the year compared with the year before, topping expectations and boosting optimism over the outlook for commodities. is the world's second-largest economy and the world's largest importer of commodities. U.S. crude CLc1 prices were up 0.61 percent at $61.08 a barrel, while Brent crude LCOc1 added 0.37 percent to $64.88. O/R

The Canadian dollar also benefited from U.S. dollar softness after U.S. retail sales unexpectedly dropped in February and as investors continued to be wary of the risk of a global trade war. USD/ MKTS/GLOB

The U.S. dollar edged up 0.1 percent against a basket of major currencies .DXY .

The loonie was able to recover some of Tuesday's nearly 1 percent decline after Bank of Canada Governor Stephen Poloz said a degree of untapped potential remains in the Canadian labor market, reinforcing expectations the central bank will take its time raising interest rates further. government bond prices were mixed across the maturity curve, with the two-year CA2YT=RR price down 1 Canadian cent to yield 1.795 percent and the benchmark 10-year CA10YT=RR flat to yield 2.204 percent.

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