C$ steadies, after hitting 1-month low on U.S. data
(Adds strategist quotes and details throughout, updates prices)
* Canadian dollar trades near flat against the greenback
* Loonie hits a one-month low
* Oil prices gain 0.3%
* Bond prices mixed across a flatter yield curve
By Levent Uslu
TORONTO, July 26 (Reuters) - The Canadian dollar was little changed against its U.S. counterpart on Friday, recovering from an earlier one-month low which it hit after better-than-expected U.S. data and the ruling out of currency intervention by a top White House adviser.
The Trump administration has "ruled out" intervening in markets to lower the U.S. dollar's value, even though President Donald Trump is concerned other countries are weakening their currencies to gain a trade advantage, White House economic adviser Larry Kudlow told CNBC.
"Larry Kudlow gave his interview and said that the U.S. would not intervene to weaken the dollar, and as a result the dollar index just took off, and dollar-Canada went along with it." said Greg Anderson, global head of foreign exchange strategy at BMO capital markets in New York.
The U.S. dollar was also boosted by data showing the U.S. economy expanded at a 2.1% annualized rate in the second quarter.
Still, the data did not alter the view that the U.S. Federal Reserve would soon lower interest rates for the first time in a decade.
At 3:56 p.m. (1956 GMT), the Canadian dollar
For the week the loonie was down 0.8%, the second straight week it declined.
Meanwhile, the price of oil, one of Canada's major exports,
was boosted by upbeat U.S. economic data and concerns over the
safety of oil transport around the Strait of Hormuz. U.S. crude
Canadian government bond prices were mixed across a flatter
yield curve, with the two-year
The gap between Canada's 10-year yield and its U.S. equivalent widened by 2.4 basis points to a spread of 63.1 basis points in favor of the U.S. bond, the biggest gap since June 18.
Canada posted a budget deficit of C$1.41 billion in the first two months of the 2019-2020 fiscal year, following a C$3.18 billion surplus posted a year earlier. (Reporting by Levent Uslu Editing by Bill Trott and Jonathan Oatis) ((+1 416 941 8067;)) Keywords: CANADA FOREX/ (UPDATE 1)
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