C$ retreats from 10-day high amid trade war worries

C$ retreats from 10-day high amid trade war worries
* Canadian dollar at C$1.2908, or 77.47 U.S. cents
* Loonie touches its strongest since March 12 at C$1.2830
* Oil prices fall 0.8 percent
* Bond prices higher across the yield curve

TORONTO, March 22 (Reuters) - The Canadian dollar was little
changed against its U.S. counterpart on Thursday, pulling back
from an earlier 10-day high, as oil prices fell and investors
worried about a potential global trade war.
The market braced for an announcement from U.S. President
Donald Trump of tariffs of as much as $60 billion on Chinese
Global stocks slipped, with some investors anticipating that
China could retaliate. Canada's commodity-linked economy could
be hurt if global trade slowed.
The price of oil, one of Canada's major exports, fell as
investors booked profits after this week's rally, but losses
were limited by the ongoing efforts of some major producers to
curb supplies.
U.S. crude prices were down 0.8 percent at $64.66 a
At 9:26 a.m. ET (1326 GMT), the Canadian dollar was
trading nearly unchanged at C$1.2908 to the greenback, or 77.47
U.S. cents.
The currency's weakest level of the session was C$1.2914,
while it touched its strongest since March 12 at C$1.2830.
On Wednesday, the loonie posted its biggest gain against the
U.S. dollar in nearly four months, buoyed by optimism about a
North American Free Trade Agreement deal.
Bank of Canada Senior Deputy Governor Carolyn Wilkins is due
to speak on financial stability. The central bank will release
her prepared remarks at 2:45 p.m. ET (1845 GMT). Domestic
inflation data for February is due on Friday.
Canadian government bond prices were higher across a flatter
yield curve in sympathy with U.S. Treasuries. The two-year
rose 5 Canadian cents to yield 1.842 percent and the
10-year climbed 50 Canadian cents to yield 2.196
On Wednesday, the 2-year yield touched its highest intraday
in nearly seven years at 1.909 percent.

(Reporting by Fergal Smith
Editing by Nick Zieminski)

2018-03-22 15:39:22

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