MARKET NEWS
Canadian dollar extends winning streak as oil prices rise - REUTERS
* Canadian dollar strengthens 0.2% against the greenback
* Trades in a range of 1.2845 to 1.2890
* Price of U.S. oil rises 1.7%
* Canadian bond yields rise across curve
TORONTO, June 29 (Reuters) - The Canadian dollar edged
higher against its U.S. counterpart on Wednesday as oil prices
climbed, but gains were limited as investors grew more worried
about a global economic slowdown.
Global stock markets slipped for the second
straight day and bond yields inched lower on growing fears that
policymakers bent on dampening inflation will tip their
economies into recession.
Canada is a major producer of commodities, including oil, so
the loonie tends to be sensitive to prospects for economic
growth.
Oil gained for a fourth straight session with tight supply
worries offsetting concerns about a weaker global economy.
U.S. crude prices rose 1.7% to $113.64 a barrel,
while the Canadian dollar was trading 0.2% higher at
1.2850 to the greenback, or 77.82 U.S. cents, its fourth
straight day of gains.
The loonie traded in a range of 1.2845 to 1.2890, after
touching on Tuesday its strongest intraday level in more than
two weeks at 1.2816.
Canada's GDP data for April, due to be released on Thursday,
could offer clues on the strength of the domestic economy.
With inflation soaring, money markets expect the Bank of
Canada to raise interest rates by three-quarters of a percentage
point at its next policy decision on July 13, which would be its
biggest hike in 24 years.
Canadian government bond yields rose across the curve, with
the 10-year up 1.8 basis points at 3.352%. The gap
between Canadian and U.S. 10-year yields widened by 4.7 basis
points to 17.4 basis points in favor of the Canadian bond.
The BoC is due to conduct a 30-year auction, with the
bidding deadline set for 12 p.m. ET (1600 GMT).
(Reporting by Fergal Smith;
Editing by Alison Williams)