Canadian dollar pares recent gains as trade deal optimism fades By Reuters


© Reuters. Canadian dollar pares recent gains as trade deal optimism fades

* Canadian dollar falls 0.2 percent against the greenback

* Canadian new home prices were unchanged in November

* Value of Canadian building permits rise 2.6 percent in November

* Price of U.S. oil falls 1.4 percent

* Bond prices rise across the yield curve

TORONTO, Jan 10 (Reuters) – The Canadian dollar weakened against its U.S. counterpart on Thursday, reducing some recent gains as fading investor optimism for a trade deal between the United States and China weighed on stocks and oil prices.

Stocks and the price of oil were pressured by a lack of details on trade talks between the world’s two largest economies. U.S. crude oil futures were down 1.4 percent at $51.64 a barrel. runs a current account deficit and exports many commodities, including oil, so its economy could be hurt if trade uncertainty drags on.

At 9:28 a.m. (1428 GMT), the Canadian dollar CAD=D4 was trading 0.2 percent lower at 1.3240 to the greenback, or 75.53 U.S. cents. The currency traded in a range of 1.3203 to 1.3251.

On Wednesday, the touched its strongest in more than five weeks at 1.3180 as the Bank of Canada held interest rates steady, as expected, but said more increases would be necessary even though low oil prices and a weak housing market will harm the economy in the short term. home prices in Canada were unchanged in November for the fourth month in a row, matching the median forecast of analysts, Statistics Canada said. data from Statistics Canada showed that the value of Canadian building permits increased by 2.6 percent in November from October. Analysts had expected a decrease of 0.5 percent. government bond prices were higher across the yield curve in sympathy with U.S. Treasuries. The two-year rose 2 Canadian cents to yield 1.897 percent and the 10-year climbed 17 Canadian cents to yield 1.958 percent.

On Wednesday, the 10-year yield touched its highest intraday since Dec. 27 at 2.000 percent.

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