CANADA FX DEBT-C$ near 10-day high as investors rethink BoC outlook

Kitco Media
By Reuters
Published:
Updated:
Reuters



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Canadian dollar weakens 0.1% against the greenback

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Touches its strongest intraday since Feb. 3 at 1.3326

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Price of U.S. oil falls 0.6%

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10-year yield touches a one-month high at 3.177%


TORONTO, Feb 13 (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Monday, but the currency held near its strongest level in ten days as investors bet the Bank of Canada would tighten further following another blockbuster domestic jobs report. Money markets see a roughly 80% chance that the BoC will raise its benchmark interest rate by July after having expected the central bank's next move to be a cut before the release of Friday's employment data. The data showed that the Canadian economy added 150,000 jobs in January, smashing expectations for a gain of 15,000.


The Canadian dollar traded 0.1% lower at 1.3358 to the U.S. dollar, or 74.86 U.S. cents, after touching its strongest intraday level since Feb. 3 at 1.3326. The modest decline for the loonie came as the price of oil, one of Canada's major exports, slipped. Investors focused on short-term demand concerns ahead of U.S. inflation data on Tuesday. U.S. crude prices were down 0.6% at $79.22 a barrel. Bank of Canada Deputy Governor Paul Beaudry is due to speak on Thursday, which could offer clues on the central bank's policy outlook. Canadian government bond yields were mixed across the curve. The 10-year dipped nearly one basis point to 3.149% after touching its highest intraday since Jan. 9 at 3.177%. (Reporting by Fergal Smith; editing by Barbara Lewis)

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