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CANADA FX DEBT-Canadian dollar rises as Texas cold snap boosts oil

Credit: REUTERS/THOMAS WHITE

The Canadian dollar edged higher against its U.S. counterpart on Thursday as oil prices rose and the greenback gave back some of this week's broader gains.

* Canadian dollar rises 0.2% against the greenback

* Price of U.S. oil increases 0.8%

* ADP data shows Canada shed 231,200 jobs in January

* Canada's 10-year yield touches an 11-month high at 1.152%

TORONTO, Feb 18 (Reuters) - The Canadian dollar edged higher against its U.S. counterpart on Thursday as oil prices rose and the greenback gave back some of this week's broader gains.

The price of oil, one of Canada's major exports, was supported by concerns that a rare cold snap in Texas could disrupt U.S. crude output for days or even weeks.

U.S. crude prices rose 0.8% to $61.61 a barrel, while the U.S. dollar was down 0.4% against a basket of major currencies.

The Canadian dollar was trading 0.2% higher at 1.2679 to the greenback, or 78.87 U.S. cents, having traded in a range of 1.2665 to 1.2717. Last month, it touched its highest in nearly three years at 1.2586.

Canada lost 231,200 jobs in January, the largest decrease since May last year, a report from payroll services provider ADP showed. December data was revised to show 338,200 jobs were gained rather than a decline of 28,800.

Separate data showed Canadian home prices rose 0.3% in January from December, led by gains in Hamilton and Montreal.

Canada's retail sales report for December is due on Friday which could help guide Bank of Canada interest rate expectations. The central bank expects the economy to contract in the first quarter after lockdowns were implemented in some provinces to curb the spread of the coronavirus.

Canada's COVID-19 vaccination campaign started on the same day in December as the United States, but it now lags dozens of countries, including its southern neighbor, and Prime Minister Justin Trudeau is feeling the pressure.

Canadian government bond yields were higher across a steeper curve. The 10-year rose 4.2 basis points to 1.152%, its highest since March last year. (Reporting by Fergal Smith; Editing by Andrea Ricci) ((fergal.smith@thomsonreuters.com; +1 647 480 7446;)) Keywords: CANADA FOREX/

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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