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CANADA FX DEBT-C$ strengthens to 3-week high against weaker greenback

Published 2016-08-10, 09:47 a/m
© Reuters.  CANADA FX DEBT-C$ strengthens to 3-week high against weaker greenback
USD/CAD
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CL
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CA2YT=RR
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CA10YT=RR
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DXY
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* Canadian dollar at C$1.3016, or 76.83 U.S. cents

* C$ touches its strongest since July 19 at C$1.2990

* Bond prices higher across the maturity curve

* 10-year yield touches its lowest since July 11 at 0.965 percent

TORONTO, Aug 10 (Reuters) - The Canadian dollar strengthened to a three-week high against its U.S. counterpart on Wednesday as oil edged higher and the greenback suffered broad-based losses.

The U.S. dollar .DXY fell against a basket of major currencies as investors re-evaluated whether the Federal Reserve will raise interest rates this year. rose even as analysts mostly expected no impact on actual supplies from talk of a potential producer meeting to discuss propping up prices. U.S. crude CLc1 prices were up 0.37 percent to $42.93 a barrel. O/R

At 9:23 a.m. EDT (1323 GMT), the Canadian dollar CAD=D4 was trading at C$1.3016 to the greenback, or 76.83 U.S. cents, much stronger than Tuesday's close of C$1.3123, or 76.20 U.S. cents.

The currency has regained all the ground it lost on Friday after a slump in domestic jobs and a record-wide trade deficit contrasted with a robust U.S. jobs report. weakest level of the session was C$1.3122, while it touched its strongest since July 19 at C$1.2990.

Canadian government bond prices were higher across the maturity curve in sympathy with U.S. Treasuries. The two-year CA2YT=RR bond firmed 1.5 Canadian cents to yield 0.500 percent and the benchmark 10-year CA10YT=RR climbed 20 Canadian cents to yield 0.994 percent.

The 10-year yield touched its lowest since July 11 at 0.965 percent.

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