CANADA FX DEBT-Canadian dollar outperforms G10 peers as oil clings to recent gains

  • 11/10/2021
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* Canadian dollar strengthens 0.2% against the greenback * Touches its strongest since last Thursday at 1.2404 * Price of U.S. oil dips 0.2% * Canadian bond yields rise across the curve TORONTO, Nov 10 (Reuters) - The Canadian dollar on Wednesday strengthened against its U.S. counterpart and all the other G10 currencies as oil held on to much of its rally in recent days and investors weighed hotter-than-expected U.S. inflation data. The loonie was trading 0.2% higher at 1.2407 to the greenback, or 80.60 U.S. cents, after touching its strongest intraday level since last Thursday at 1.2404. The Australian dollar was the only other G10 currency to gain ground against the greenback. It was up 0.1%. The price of oil, one of Canada"s major exports, steadied after three days of gains, with investors turning attention to the release later on Wednesday of U.S. oil inventory data. U.S. crude prices were down 0.2% at $84.01 a barrel. U.S. consumer prices rose at an annual rate of 6.2% in October, the biggest gain since 1990, further signs that inflation could remain uncomfortably high well into next year amid snarled global supply chains. Canada"s inflation report for October is due next Wednesday, which could offer clues on the Bank of Canada policy outlook. The central bank should not change its three-decade old monetary policy framework, which is flexible enough to deal with bouts of price increases, particularly as tweaking it could trigger more public anxiety over hot inflation, analysts say. Canadian government bond yields were higher across the curve, tracking the move in U.S. Treasuries. The 10-year rose 3.1 basis points to 1.627%. (Reporting by Fergal Smith; Editing by Edmund Blair)

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