CANADA FX DEBT-C$ firms ahead of business survey as oil prices rise By Reuters


© Reuters. CANADA FX DEBT-C$ firms ahead of business survey as oil prices rise

* Canadian dollar rises 0.1 percent against the greenback

* Price of U.S. oil rises 0.5 percent

* Resales of Canadian homes dip 0.4 percent in September

* Canada-U.S. 10-year spread widens by 2.5 basis points

TORONTO, Oct 15 (Reuters) – The Canadian dollar edged higher against its U.S. counterpart on Monday ahead of the release of a business survey by the Bank of Canada, as the price of oil was boosted by growing tensions between Western powers and Saudi Arabia.

The price of oil, one of Canada’s major exports, rose as tension over the disappearance of a prominent Saudi journalist stoked supply worries, although concerns over the long-term demand outlook dragged on sentiment. crude prices were up 0.5 percent at $71.71 a barrel.

The Bank of Canada’s autumn issue of the Business Outlook Survey is due for release at 10:30 a.m. (1430 GMT).

The data could help guide expectations for the Bank of Canada interest rate decision next week. Although some responses to the survey could have been collected before a recent deal to revamp the North American Free Trade Agreement reduced uncertainty for the country’s economy.

Money markets see a nearly 90-percent chance of a rate hike at the Oct. 24 rate announcement.

Resales of Canadian homes dipped 0.4 percent in September from August, the first decline since April, the Canadian Real Estate Association said. 9:29 a.m. (1329 GMT), the Canadian dollar CAD=D4 was trading 0.1 percent higher at 1.3013 to the greenback, or 76.85 U.S. cents. The currency traded in a narrow range of 1.3005 to 1.3033.

Last week, the declined 0.6 percent as worries over higher bond yields and the impact of trade tariffs contributed to volatility in global financial markets.

Still, speculators have cut bearish bets on the Canadian dollar to the lowest since March, data from the U.S. Commodity Futures Trading Commission and Reuters calculations showed on Friday. As of Oct. 9, net short positions had decreased to 12,145 contracts from 18,484 a week earlier.

Canadian government bond prices were mixed across a flatter yield curve, with 10-year rising 12 Canadian cents to yield 2.485 percent.

The gap between Canada’s 10-year yield and its U.S. counterpart widened by 2.5 basis points to a spread of 66.7 basis points in favor of the U.S. bond.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Source link



Leave a Reply

error: Content is protected !!