- July 15, 2018
- Posted by: Trading
- Category: News
* Canadian dollar at C$1.3183, or 75.86 U.S. cents
* Price of U.S. oil rises 0.3 percent
* Bond prices higher across much of the yield curve
TORONTO, July 13 (Reuters) – The Canadian dollar weakened against its U.S. counterpart on Friday as the greenback broadly climbed, with a trade deal between Canada and the EU being potentially at risk.
At 10:08 a.m. EDT (1408 GMT), the Canadian dollar was trading 0.2 percent lower at C$1.3183 to the greenback, or 75.86 U.S. cents. The currency, which is on track to fall 0.7 percent for the week, traded in a range of C$1.3153 to C$1.3209.
Italy will not ratify the European Union’s free trade agreement with Canada, Deputy Prime Minister Luigi Di Maio said. The Comprehensive Economic and Trade Agreement needs to be approved by all 28 EU member states to take full effect. U.S. dollar benefited from a safe-haven bid after data showing a record Chinese trade surplus stirred worries about the U.S.-China trade row. exports many commodities, including oil, and runs a current account deficit so its economy could also be hurt if the flow of trade or capital slows.
The country has its own trade dispute with the United States and is also in slow-moving talks to revamp the North American Free Trade Agreement.
Still, Canadian exporters are more optimistic about the near-term outlook, Export Development Canada’s Mid-Year Trade Confidence Index showed.
Stronger exports and investment have started to reduce Canada’s reliance on household spending to fuel growth, the Bank of Canada said on Wednesday as it raised rates for a fourth time since July 2017.
Chances of another rate hike by December have fallen to about 50 percent from more than 70 percent after Wednesday’s rate announcement, the overnight index swaps market indicated. BOCWATCH
The price of oil rose but was set for a second straight week of declines after Libyan ports reopened and on the view that Iran might still export some crude despite U.S. sanctions. crude prices were up 0.3 percent at $70.53 a barrel.
Canadian government bond prices were slightly higher across much of the yield curve in sympathy with U.S. Treasuries.
The two-year was up 1 Canadian cent to yield 1.929 percent and the 10-year gained 8 Canadian cents to yield 2.141 percent.
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