Loonie sticks to narrow range ahead of Friday's jobs data

Published 2019-11-06, 09:42 a/m
© Reuters.  Loonie sticks to narrow range ahead of Friday's jobs data
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 falls 0.1% against the greenback

* Loonie trades in a range of 1.3140 to 1.3176

* Price of U.S. oil increases 0.1%

* Canadian bond prices rise across the yield curve

TORONTO, Nov 6 (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Wednesday, trading in a narrow range as investors awaited the outcome of trade talks between the United States and China and Canada's jobs report loomed at the end of the week.

At 9:08 a.m. (1408 GMT), the Canadian dollar CAD=D4 was trading 0.1% lower at 1.3170 to the greenback, or 75.93 U.S. cents. The currency, which notched a six-day high at 1.3116 on Tuesday, traded in a range of 1.3140 to 1.3176.

Global stock markets .WORLD steadied near record highs, supported by rising optimism about a U.S.-China trade deal this month and global business surveys indicating that tariff-hit manufacturing sentiment has troughed. is a major exporter of commodities, including oil, so its economy could benefit from an improved outlook for global trade.

U.S. crude oil futures CLc1 were up 0.1% at $57.28 a barrel, turning higher after being pressured by a larger-than-expected build in U.S. crude stocks and weak euro zone economic figures. employment report for October is due on Friday, which can help guide expectations for the Bank of Canada policy outlook.

Last week, the central bank left its benchmark interest rate on hold at 1.75% as it cut its economic growth forecasts and expressed concern about trade uncertainty.

Canadian government bond prices were higher across the yield curve in sympathy with U.S. Treasuries. The two-year CA2YT=RR rose 5.5 Canadian cents to yield 1.61% and the 10-year CA10YT=RR was up 35 Canadian cents to yield 1.57%.

On Tuesday, the 10-year yield reached a one-week intraday high at 1.616%.

Ontario, Canada's most populous province and manufacturing heartland, was due to release a fiscal update on Wednesday afternoon. Finance Minister Rod Phillips has indicated the deficit for the current fiscal year, which ends on March 31, will be lower than the C$10.3 billion shortfall estimated in April's budget.

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