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CANADA FX DEBT-C$ dips with oil prices ahead of Trudeau meeting with Trump

Published 2017-02-13, 09:32 a/m
© Reuters.  CANADA FX DEBT-C$ dips with oil prices ahead of Trudeau meeting with Trump
USD/CAD
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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$1.3101, or 76.33 U.S. cents

* Bond prices lower across the yield curve

TORONTO, Feb 13 (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Monday as oil prices fell, ahead of a meeting between Canadian Prime Minister Justin Trudeau and U.S. President Donald Trump.

Trudeau will look to nurture economic ties and avoid tensions over issues such as immigration on which the two leaders are sharply at odds. may have most to lose if a proposed renegotiation of the North American Free Trade Agreement weakens trade between the two countries.

Spending by Americans affects one-fifth of Canada's economy, while spending by Canadians affects less than three percent of U.S. gross domestic product, said BMO Capital Markets in a research note.

The U.S. dollar .DXY rose against a basket of major currencies as investors focused again on the U.S. reflation trade and braced for testimony by Federal Reserve chief Janet Yellen this week. crude CLc1 prices were down 1.39 percent at $53.11 a barrel in response to growing evidence that U.S. production is rising. is one of Canada's major exports.

At 9:22 a.m. ET (1422 GMT), the Canadian dollar CAD=D4 was trading at C$1.3101 to the greenback, or 76.33 U.S. cents, slightly weaker than Friday's close of C$1.3085, or 76.42 U.S.

The currency's strongest level of the session was C$1.3073, while its weakest was C$1.3121.

The loonie weakened 0.4 percent last week after having posted a recent four-month high of C$1.2969. Some of last week's losses were pared after data on Friday showed a surge in domestic jobs.

Also on Friday, data from the Commodity Futures Trading Commission and Reuters calculations showed that speculators increased bullish bets on the Canadian dollar. Canadian dollar net long positions rose to 8,550 contracts as of Feb. 7 from 3,472 a week earlier. government bond prices were lower across the yield curve in sympathy with U.S. Treasuries ahead of Yellen's testimony. The two-year CA2YT=RR dipped 1.5 Canadian cents to yield 0.778 percent and the benchmark 10-year CA10YT=RR declined 19 Canadian cents to yield 1.719 percent.

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