CANADA FX DEBT-C$ rebounds from 8-day low as records fall on Wall Street

  • 1/26/2021
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* Canadian dollar rises 0.3% against the greenback * Loonie touches its weakest intraday since Jan. 18 at 1.2782 * Price of U.S. oil increases 0.4% * Canadian bond yields rise across the curve TORONTO, Jan 26 (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Tuesday, recovering from an earlier eight-day low, as corporate earnings results bolstered Wall Street, offsetting uncertainty about the speed and size of U.S. stimulus. The loonie was trading 0.3% higher at 1.2699 to the greenback, or 78.75 U.S. cents, having touched its weakest since Jan. 18 at 1.2782. The S&P 500 notched a record high, helped by positive earnings updates from a slew of companies including General Electric and Johnson & Johnson, while the Federal Reserve kicked off its two-day policy meeting. U.S. Senate Majority Leader Chuck Schumer said Democrats may try to pass much of President Joe Biden"s $1.9 trillion spending package with a majority vote, but it is not clear if they have the numbers to override Republican objections. Canada sends about 75% of its exports to the United States, including oil. U.S. crude prices were up 0.4% at $53.00 a barrel alongside rising global shares and amid reports of a blast in Saudi Arabia, trading near 11-month highs. Canadian government bond yields were higher across the curve in tandem with U.S. Treasuries. The 10-year rose 1.1 basis points to 0.824%. Canada"s GDP data for November is due on Friday which could offer some clues on the interest rate outlook. (Reporting by Fergal Smith Editing by Alistair Bell)

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