C$ nudges lower as investors weigh NAFTA uncertainty

C$ nudges lower as investors weigh NAFTA uncertainty
(Adds analyst quotes, details, updates prices)
* Canadian dollar at C$1.2467, or 80.21 U.S. cents
* U.S. crude prices slide 1.4 percent
* Loonie touches its strongest intraday since Sept. 29
* Bond prices higher across the yield curve

By Fergal Smith
TORONTO, Oct 12 (Reuters) - The Canadian dollar was
marginally weaker against its U.S. counterpart on Thursday,
pulling back from an earlier near two-week high as oil prices
fell and investors weighed an uncertain outlook for the North
American Free Trade Agreement.
Prospects of the United States introducing a sunset clause
into the NAFTA agreement, which would kill it unless it was
renegotiated every five years, had only a brief negative impact
on the currency.
"Most of these proposals that are being exchanged are viewed
by the market as just noise," said Andrew Kelvin, senior rates
strategist at TD Securities. "The market won't react until it
becomes apparent what if any the final agreement will be."
Prices of oil, one of Canada's major exports, slipped. The
market was pressured by a bearish outlook by the International
Energy Agency, which lowered its forecast for oil demand for
U.S. crude prices were down 1.4 percent at $50.60 a
At 4 p.m. (2000 GMT), the Canadian dollar was
trading at C$1.2467 to the greenback, or 80.21 U.S. cents, down
0.1 percent.
The currency's weakest level of the session was C$1.2491,
while it touched its strongest since Sept. 29 at C$1.2434.
Canadian home resale prices in September had their biggest
fall in seven years, while new home prices were flat in August
in the once red-hot markets of Toronto and Vancouver, adding to
evidence that the country's housing boom continued to cool, data
Canadian government bond prices were higher across the yield
curve, with the two-year up 2.1 Canadian cents to
yield 1.568 percent and the 10-year rising 23
Canadian cents to yield 2.084 percent.

(Reporting by Fergal Smith; Additional reporting by Solarina
Ho; Editing by Susan Thomas and Peter Cooney)

First Published: 2017-10-12 15:55:54
Updated 2017-10-12 22:43:54

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