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CANADA FX DEBT-C$ holds on to gains as wholesale trade beats estimates

Published 2018-09-24, 10:25 a/m
Updated 2018-09-24, 10:30 a/m
© Reuters.  CANADA FX DEBT-C$ holds on to gains as wholesale trade beats estimates

* Canadian dollar at 1.2915 to the greenback, or 77.43 U.S. cents

* Price of U.S. oil rises 1.9 percent

* Canadian bond prices fall across the yield curve

* 10-year yield touches a 4-month high at 2.459 percent

TORONTO, Sept 24 (Reuters) - The Canadian dollar was little changed against its U.S. counterpart on Monday, holding onto recent gains, as oil prices rose and the greenback fell broadly, while domestic data showed a stronger-than-expected increase in wholesale trade.

Canadian wholesale trade rose 1.5 percent in July from June, a bigger increase than the 0.5 percent gain expected by analysts, data from Statistics Canada showed. volumes rose 1.2 percent, which could help boost gross domestic product for the month. Data for July gross domestic product is due on Friday.

The price of oil, one of Canada's major exports, climbed after Saudi Arabia and Russia ruled out any immediate increase in production despite calls by U.S. President Donald Trump for action to raise global supply. crude CLc1 prices were up 1.9 percent at $72.14 a barrel.

The U.S. dollar .DXY fell against a basket of other currencies ahead of a widely expected interest rate hike by the U.S. Federal Reserve this week. 9:51 a.m. (1351 GMT), the Canadian dollar CAD=D4 was trading nearly unchanged at 1.2915 to the greenback, or 77.43 U.S. cents. The currency, which has strengthened by 1.9 percent over the last two weeks, traded in a range of 1.2911 to 1.2949.

The steady performance of the loonie on Monday occurred despite the latest round of U.S.-Chinese tariffs taking effect, with neither country showing signs of backing down from a protracted trade war.

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Canada runs a current account deficit, so its economy could be hurt if the global flow of trade or capital slows.

The country has its own trade dispute with the United States and is in talks to renew the North American Free Trade Agreement.

U.S. and Canadian officials are "very likely" to hold informal talks on NAFTA on the sidelines of a major U.N. meeting in the next few days, Canadian Prime Minister Justin Trudeau said on Sunday. have raised bearish bets on the Canadian dollar for the third straight week, data from the U.S. Commodity Futures Trading Commission and Reuters calculations showed on Friday. As of Sept. 18, net short positions had increased to 30,111 contracts from 26,942 a week earlier. government bond prices were lower across the yield curve, with the 10-year CA10YT=RR falling 14 Canadian cents to yield 2.447 percent. The 10-year yield touched 2.459 percent, the highest since May 22.

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