CANADA FX DEBT-Canadian dollar gains as U.S. inflation data weighs on greenback

  • 8/11/2021
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* Canadian dollar strengthens 0.2% against the greenback * Loonie trades in a range of 1.2489 to 1.2548 * Price of U.S. oil falls 0.9% * Canadian bond yields trade mixed across the curve TORONTO, Aug 11 (Reuters) - The Canadian dollar strengthened against the greenback on Wednesday as investors weighed the impact of U.S. inflation data on the Federal Reserve"s policy outlook, with the currency adding to its recovery from a near two-week low the day before. The U.S. dollar fell against a basket of major currencies after data showed U.S. consumer price increases slowed in July. Still, inflation overall remained historically high amid continued supply-chain disruptions and stronger demand for travel-related services as economic activity rebounded. The Fed is paying close attention to price pressures as it mulls when to begin reducing its massive bond holdings. A signal on the timing could come at a meeting of central bankers in Jackson Hole, Wyoming, on Aug. 26-28. The Canadian dollar was trading 0.2% higher at 1.2497 to the greenback, or 80.02 U.S. cents, after trading in a range of 1.2489 to 1.2548. On Tuesday, the currency touched its weakest intraday level since July 28 at 1.2589, but then rebounded as the U.S. Senate passed a $1 trillion infrastructure package and oil, one of Canada"s major exports, clawed back some recent losses. U.S. crude prices on Wednesday were down 0.9% at $67.65 a barrel as the United States urged OPEC and its oil-producing partners to boost output, saying current production was not enough and could threaten the global economic recovery. Canadian government bond yields were mixed across the curve. The 10-year was little changed at 1.271%, after earlier touching its highest since July 15 at 1.295%. (Reporting by Fergal Smith; Editing by Anil D"Silva) Our Standards: The Thomson Reuters Trust Principles.

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