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Canadian dollar steadies as U.S.-China trade deal hopes climb

Published 2019-11-15, 09:08 a/m
© Reuters.  Canadian dollar steadies as U.S.-China trade deal hopes climb
USD/CAD
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CL
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CA2YT=RR
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CA10YT=RR
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* Loonie is on track to fall 0.1% this week

* Foreign investors buy Canadian securities in September

* Price of U.S. oil increases 0.3%

* Canadian bond prices fall across the yield curve

TORONTO, Nov 15 (Reuters) - The Canadian dollar was nearly unchanged against its U.S. counterpart on Friday, steadying after it hit a one-month low the day before as investors grew more hopeful of a U.S.-China trade deal.

Global stocks rose .WORLD after White House economic adviser Larry Kudlow said on Thursday that the United States and China were nearing a deal and talking every day. Bank of Canada last month expressed concern about global trade uncertainty as it cut its economic growth forecasts and left its benchmark interest rate unchanged at 1.75%.

On Thursday, Bank of Canada Governor Stephen Poloz said that policymakers should also pay attention to longer-term structural forces, such as the widespread adoption of artificial intelligence, machine learning and other new technologies that could be boosting potential output in ways that could take years to show up in the data. 8:39 a.m. (1339 GMT), the Canadian dollar CAD=D4 was trading nearly unchanged at 1.3244 to the greenback, or 75.51 U.S. cents. The currency, which hit on Thursday a one-month low at 1.3270, traded in a range of 1.3219 to 1.3252.

For the week, the loonie was on track to decline 0.1%.

Steadying of the loonie on Friday came as the price of oil, one of Canada's major exports, rose and data showed that foreign investors were buyers of Canadian securities in September.

U.S. crude CLc1 prices were up 0.3% at $56.92 a barrel, supported by hopes that producer group OPEC and its associates will keep a lid on supply when they meet to discuss output policy next month. investors bought a net C$4.76 billion in Canadian securities in September, led by corporate bonds, Statistics Canada said. government bond prices were lower across the yield curve in sympathy with U.S. Treasuries as data showed that U.S. retail sales rebounded in October. two-year CA2YT=RR fell 4.5 Canadian cents to yield 1.545% and the 10-year CA10YT=RR was down 21 Canadian cents to yield 1.487%. On Thursday, the 10-year yield touched its lowest since Nov. 4 at 1.464%.

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