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C$ dips as U.S.-China trade talks concerns weigh on oil


Reuters


TORONTO, Feb 11 (Reuters) - The Canadian dollar weakened against its broadly stronger U.S. counterpart on Monday as oil prices fell and investors weighed prospects for trade talks this week between the United States and China.

The U.S. dollar rose as concerns grew that U.S.-China talks would not heal a rift over trade between the world's largest economies.

Canada is a major producer of commodities, including oil, so its economy could be hurt by an uncertain outlook for global trade.

U.S. crude prices were down 2.3 percent at $51.5 a barrel.

At 10:45 a.m. EST (1545 GMT), the Canadian dollar was trading 0.2 percent lower at 1.3306 to the greenback, or 75.15 U.S. cents. The currency traded in a range of 1.3261 to 1.3314.

On Friday, much stronger-than-expected domestic jobs data helped the loonie rebound from its weakest intraday in two weeks at 1.3329. But the currency still lost ground last week, declining 1.4 percent.

Data last Friday from the U.S. Commodity Futures Trading Commission and Reuters calculations showed that speculators last month raised their bearish bets on the Canadian dollar to the highest since June 2017.

As of Jan. 8, net short positions had jumped to 66,002 contracts from 50,649 at the end of December.

Canadian government bond prices were lower across the yield curve in sympathy with U.S. Treasuries. The two-year fell 5.5 Canadian cents to yield 1.8 percent and the 10-year declined 30 Canadian cents to yield 1.916 percent.

The gap between Canada's 10-year yield and its U.S.

equivalent narrowed by 1.4 basis points to a spread of 73.7 basis points in favor of the U.S. bond.






This article appears in: Stocks , World Markets , Politics



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